Core Insights - Xcel Brands has entered a licensing partnership with K9 Wear Inc. to develop a new pet brand called Trust. Respect. Love by Cesar Millan, combining K9 Wear's expertise in pet accessories with Xcel's brand-building capabilities [1][4] - The new brand will focus on high-quality pet products, including toys, training tools, and grooming tools, aimed at enhancing the pet ownership experience [2][3] - Cesar Millan's philosophy of trust, respect, and love will be integral to the product design, ensuring a focus on the well-being of both pets and their owners [3][5] Company Overview - Xcel Brands, Inc. is a media and consumer products company specializing in the design, licensing, and marketing of various consumer products, with a focus on social commerce [6] - The company has generated over $5 billion in retail sales through livestreaming and interactive television, reaching over 43 million social media followers [6] - K9 Wear is known for its innovative pet apparel and accessories, including the world's first interchangeable apparel harness, and collaborates with various fashion brands [7] Industry Context - The pet industry is experiencing significant growth, prompting Xcel Brands to expand its portfolio with high-quality pet accessories [4] - The new brand will be showcased at the Global Pet Expo in March 2026, indicating a strategic approach to market entry and brand visibility [5]

NEW YORK, June 23, 2025 (GLOBE NEWSWIRE) -- Xcel Brands (NASDAQ: XELB), an industry leading media and consumer products company specializing in building influencer-driven brands through social commerce and livestreaming, is proud to announce a groundbreaking new partnership with supermodel, advocate, and founder of Coco Rocha Model Camp, Coco Rocha. With more than two decades at the highest level of the fashion industry—having graced over 100 magazine covers, been shot by top photographers across the globe, ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $1.2 million and $8.3 million for the full fiscal year, roughly half of the prior year due to the sale of the Lori Goldstein brand and exit from wholesale operations [14] - Total revenues for Q1 2025 were $1.3 million, a slight increase from Q4 2024 [14] - Adjusted EBITDA loss for Q4 2024 was $792,000, an improvement of $361,000 from Q4 2023 [13] - The company reported a net loss of approximately $2.8 million for Q1 2025, a 56% improvement on a GAAP basis compared to the prior year [19] Business Line Data and Key Metrics Changes - The company has reduced direct operating costs and expenses by nearly 50% year over year from FY 2023 to FY 2024 [15] - Direct operating expenses for Q1 2025 were approximately $2.3 million, about 40% lower than the prior year [16] - The Longeberger brand is set to launch on QVC in the fall, and the Ormy team has onboarded 25 premium beauty brands [12] Market Data and Key Metrics Changes - Social media reach across the brand portfolio grew from 5 million followers in January 2025 to 45 million [10] - The company aims to build a portfolio of creator influencer brands that reaches 100 million followers [12] Company Strategy and Development Direction - The strategic transaction with United Trademark Group aims to enhance global distribution and product quality [9] - The company is focusing on creator influencer brands, with new launches expected to drive growth [10] - Management is cautious about Q3 and Q4 due to potential impacts from tariffs and operational consolidations [11] Management's Comments on Operating Environment and Future Outlook - Management is assessing the impact of tariffs and the HSN Tampa studio closure on business operations [13] - The company forecasts adjusted EBITDA for 2025 to be between $1 million and $2.5 million, factoring in potential disruptions [23] - Management believes that influencer brands are the new currency in media, particularly with credible voices in their categories [31] Other Important Information - The company has a balance sheet reflecting stockholders' equity of approximately $26 million and unrestricted cash of about $300,000 as of March 31, 2025 [20] - The company refinanced its term debt, resulting in a net increase of approximately $3 million in liquidity [20] Q&A Session Summary Question: Clarification on adjusted EBITDA for 2025 - Management confirmed that the adjusted EBITDA forecast includes potential impacts from tariffs and operational disruptions [23] Question: Run rate of operating costs - The run rate for overhead costs is approximately $9 million annually, translating to less than $2.5 million per quarter [24][25] Question: Liquidity needs for upcoming brand launches - Management stated that current liquidity is sufficient, but they will address any additional capital needs as they arise [28] Question: Revenue potential of recently launched brands - Management indicated that brands like Cesar Millan have the potential to generate between $5 million and $10 million in royalty income per year [47] Question: Operating expenses as the business pivots to growth - Management noted that the structure is designed to scale, with incremental costs primarily tied to revenue growth [49][50] Question: Revenue expectations for Q2 - Management expressed confidence in Q2 performance but will report any significant impacts as they arise [52]

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $1.2 million and for the full fiscal year 2024 were $8.3 million, both approximately half of the prior year due to the sale of the Lori Goldstein brand and exit from wholesale operations [13][14] - Total revenues for Q1 2025 were $1.3 million, showing a slight increase from Q4 2024 [13] - The company reported a net loss of approximately $2.8 million for Q1 2025, an improvement from a loss of $6.3 million in the prior year quarter, representing a 56% improvement on a GAAP basis [18] - Adjusted EBITDA for Q1 2025 was negative $700,000, a 56% improvement over the negative $1.6 million reported in the prior year quarter [18] Business Line Data and Key Metrics Changes - The company has significantly reduced direct operating costs and expenses by nearly 50% year over year from FY 2023 to FY 2024 [14] - Direct operating expenses for Q1 2025 were approximately $2.3 million, about 40% lower than the prior year period [14] - The company generated an adjusted EBITDA loss of $792,000 in Q4 2024, which is a $361,000 improvement over Q4 2023 [12] Market Data and Key Metrics Changes - The social media reach across the brand portfolio grew from 5 million followers in January 2025 to 45 million to date, indicating a significant increase in media currency [9] - The company aims to build a portfolio of creator influencer brands that reaches 100 million followers, which is expected to accelerate growth [11] Company Strategy and Development Direction - The company closed a strategic transaction with United Trademark Group in April 2025, enhancing its brand management and supply chain capabilities [7] - The partnership with UTG is expected to accelerate the formation of additional creator influencer brands [8] - The company is focusing on acquiring brands with significant social media followings and media companies to extend its reach [34] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for Q3 and Q4 2025 due to potential impacts from tariffs and the consolidation of HSN's operations [10] - The company is assessing the impact of tariffs and the HSN Tampa studio closure and is working on potential solutions, including short-term domestic production [12] - Management forecasts adjusted EBITDA for 2025 to be in the range of $1 million to $2.5 million, including potential impacts from tariffs and operational disruptions [21] Other Important Information - The company reported stockholders' equity of approximately $26 million and unrestricted cash of approximately $300,000 as of March 31, 2025 [19] - The company refinanced its term debt in April 2025, resulting in a net increase of approximately $3 million in liquidity [19] Q&A Session Summary Question: Clarification on adjusted EBITDA for 2025 - Management confirmed that the adjusted EBITDA forecast includes potential impacts from tariffs and disruptions due to HSN's relocation [21] Question: Run rate of operating costs - The run rate for operating costs is approximately $9 million annually, translating to less than $2.5 million per quarter [23][24] Question: Guarantees from G III on Halston - The guaranteed minimum under the license is $1.7 million per year, with expectations for a slight pickup in Q2 [25] Question: Liquidity needs for upcoming launches - Management indicated that current liquidity is sufficient, but they will address any additional capital needs as they arise [26][27] Question: Revenue potential from new brands - Management anticipates that new brands like Cesar Millan's pet products could generate between $5 million and $10 million in royalty income per year [46] Question: Operating expenses as the business pivots to growth - The structure is designed to scale, with incremental costs primarily tied to revenue growth [47][48]

Financial Performance - Current quarter net revenue decreased by $0.85 million to $1.33 million from $2.18 million in the prior year quarter, primarily due to the divestiture of the Lori Goldstein brand [131]. - Net loss attributable to Xcel Brands, Inc. stockholders was $2.80 million for the current quarter, compared to a net loss of $6.29 million for the prior year quarter [141]. - Non-GAAP net loss was approximately $1.37 million, or $0.58 per diluted share, for the current quarter, compared to a non-GAAP net loss of $1.80 million, or $0.88 per diluted share, for the prior year quarter [142]. - Adjusted EBITDA for the current quarter was approximately $(0.70) million, compared to approximately $(1.57) million for the prior year quarter [143]. - As of March 31, 2025, unrestricted cash and cash equivalents were $0.3 million, down from $1.3 million as of December 31, 2024 [149]. - Working capital deficit was approximately $0.6 million as of March 31, 2025, compared to working capital of $0.8 million as of December 31, 2024 [151]. - As of March 31, 2025, the company incurred a net loss of $(2.80) million, with net cash used in operating activities of approximately $1.43 million, a decrease from $(2.61) million in the prior year quarter [157][158]. Cost Management - Direct operating costs and expenses decreased by approximately $1.68 million, from $3.96 million in the prior year quarter to $2.28 million in the current quarter, due to restructuring and cost reduction actions [132]. - The company has reduced its direct operating expenses to an expected run rate of less than $10 million per annum as of the end of the first quarter of 2025 [132]. - The company has restructured its business operations, reducing direct operating costs from approximately $8 million per quarter in 2022 to less than $2.5 million per quarter, resulting in over $22 million in annualized cost savings [173]. Capital and Financing - The company is actively pursuing an equity offering to secure additional capital, with substantial doubt about its ability to meet financial obligations without further funding [154][155]. - On April 21, 2025, the company amended its loan agreement, resulting in a repayment of $1.5 million of the $3.95 million Term Loan A and an additional Term Loan B of $5.12 million [164]. - Net cash provided by financing activities in the current quarter was $2.05 million, primarily from the delayed draw portion of the December 2024 term loan agreement [162]. - The company has no off-balance sheet arrangements that could materially affect its financial condition or liquidity [177]. - The company is currently in compliance with all applicable financial covenants following the recent refinancing [169]. Business Strategy and Growth - The company aims to build a diversified portfolio of lifestyle consumer products brands through organic growth and strategic acquisitions [128]. - The company plans to diversify its licensed products and distribution channels to reduce dependence on specific retailers and markets, focusing on brands like Halston and C Wonder [171]. - The company has launched new brands, including TowerHill by Christie Brinkley and LB70 by Lloyd Boston, and plans to introduce two new co-branded collaborations in Spring 2026 [172]. - The company generated over $5 billion in retail sales via live streaming and interactive television channels [127]. Market Conditions - The company continues to face headwinds from poor economic conditions, inflation, and rising consumer debt levels, which may negatively impact demand for its products [175].

Core Viewpoint - Xcel Brands, Inc. reported a challenging first quarter of 2025 with a significant decrease in total revenue, but showed improvements in operational costs and social media engagement, positioning the company for future growth [2][3][5]. Financial Performance - Total revenue for Q1 2025 was $1.3 million, down approximately $0.9 million (-39%) from Q1 2024, primarily due to a decline in net licensing revenue following the divestiture of the Lori Goldstein brand [3]. - Direct operating costs and expenses decreased by approximately $1.7 million (-42%) to $2.3 million in Q1 2025, with an expected annual run rate of less than $10 million [4]. - The net loss attributable to Xcel Brands stockholders for Q1 2025 was approximately $2.8 million, or $(1.18) per share, compared to a net loss of $6.3 million, or $(3.09) per share, in the prior year [5][10]. - Adjusted EBITDA improved from negative $1.6 million in Q1 2024 to negative $0.7 million in Q1 2025, representing a 56% improvement [6][10]. Balance Sheet - As of March 31, 2025, the company had stockholders' equity of approximately $25.7 million, unrestricted cash and cash equivalents of approximately $0.3 million, and a working capital deficit of approximately $0.6 million [7]. - The company also reported $8.5 million in long-term debt [7]. Brand and Market Position - The social media following of Xcel's brand portfolio increased from 5 million to 45 million followers over the past five months, with a goal of reaching 100 million followers [2]. - Xcel Brands has generated over $5 billion in retail sales through livestreaming and digital channels, with a broadcast reach into 200 million households [11].

Core Viewpoint - Xcel Brands, Inc. is set to report its first quarter 2025 financial results on June 4, 2025, alongside a conference call to discuss the fourth quarter 2024 earnings released on May 28, 2025 [1] Group 1: Company Overview - Xcel Brands, Inc. is a media and consumer products company involved in the design, licensing, marketing, live streaming, and social commerce sales of various branded products [3] - The company was founded in 2011 with a vision to innovate shopping, entertainment, and social media through social commerce [3] - Xcel owns several brands including Halston, Judith Ripka, and C. Wonder, and has collaborations with brands like TowerHill by Christie Brinkley and LB70 by Lloyd Boston [3] Group 2: Business Strategy and Performance - Xcel Brands employs a modern consumer products sales strategy that includes interactive television, digital live-stream shopping, social commerce, and e-commerce channels [3] - The company's brands have generated over $5 billion in retail sales through livestreaming and digital channels, with more than 20,000 hours of content production in live-stream and social commerce [3] - Xcel's brand portfolio reaches over 40 million social media followers and has a broadcast reach into 200 million households [3] Group 3: Leadership and Expertise - The executive team at Xcel Brands possesses significant experience in live streaming, production, merchandising, design, marketing, retailing, and licensing [3] - The team has a proven track record of success in enhancing branded consumer products companies [3]

Core Viewpoint - Xcel Brands, Inc. is currently facing compliance issues with Nasdaq due to delinquent filings, but the company is taking steps to rectify the situation and regain compliance by submitting necessary reports by the specified deadlines [1][2]. Company Overview - Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company focused on the design, licensing, marketing, and sales of branded apparel, footwear, accessories, fine jewelry, home goods, and other consumer products [3]. - The company was founded in 2011 and aims to innovate shopping, entertainment, and social media through social commerce [3]. - Xcel owns several brands, including Halston, Judith Ripka, and C. Wonder, and has a controlling interest in Longaberger Licensing LLC [3]. - The company has generated over $5 billion in retail sales through livestreaming and interactive television, showcasing its strong presence in digital sales channels [3]. Compliance Issues - On May 22, 2025, Nasdaq notified Xcel Brands of its delinquency in filing Form 10-Q for the period ended March 31, 2025, and Form 10-K for the year ended December 31, 2024 [1]. - Xcel has until June 30, 2025, to submit a plan to regain compliance, with a potential extension until October 13, 2025, if granted [2]. - The company filed the delinquent Form 10-K on May 28, 2025, and plans to file the Form 10-Q by the end of June 2025 to meet Nasdaq's continued listing requirements [2].

Core Viewpoint - Xcel Brands, Inc. reported a significant decline in revenue for both the fourth quarter and the full fiscal year of 2024, primarily due to the divestiture of the Lori Goldstein brand and the discontinuation of its wholesale business. However, the company is optimistic about future growth driven by new brand launches and an increase in social media followers [2][3][6]. Financial Results Summary Fourth Quarter 2024 - Total revenue was $1.2 million, a decrease of approximately $1.1 million (-47%) from the fourth quarter of 2023, mainly due to a decline in net licensing revenue [3]. - Net loss attributable to stockholders was approximately $7.1 million, or $(3.00) per share, compared to a net loss of $6.8 million, or $(3.43) per share, for the prior year quarter [4][10]. - Adjusted EBITDA improved by 31% year-over-year, from negative $1.2 million to negative $0.8 million [5][10]. Full Year 2024 - Total revenue for the fiscal year was $8.3 million, representing a decrease of approximately $9.5 million (-53%) from fiscal year 2023, primarily due to the discontinuation of wholesale businesses [6]. - Net loss attributable to stockholders for the year was approximately $22.4 million, or $(9.84) per share, compared to a net loss of $21.1 million, or $(10.68) per diluted share, for the prior year [7][8]. - Adjusted EBITDA improved by 40% year-over-year, from negative $5.7 million in fiscal year 2023 to negative $3.5 million in fiscal year 2024 [9][10]. Balance Sheet Overview - As of December 31, 2024, stockholders' equity was approximately $28 million, with unrestricted cash and cash equivalents of approximately $1.3 million and long-term debt of $6.6 million [11]. - The company refinanced its term loan debt in April 2025, resulting in a net increase of approximately $3.0 million in liquidity [12]. Business Strategy and Market Position - Xcel Brands is focused on leveraging its expertise in livestream shopping and social commerce to drive growth, with a goal of reaching 100 million social media followers across its brand portfolio, which has grown from 5 million to 45 million followers in the past five months [2]. - The company is engaged in the design, licensing, marketing, and sales of branded consumer products, with a strategy that includes interactive television, digital live-stream shopping, and e-commerce channels [13].

Business Performance and Growth - Xcel Brands generated over $5 billion in retail sales via live streaming in interactive television and digital channels[15]. - The Judith Ripka Brand has shown continual quarterly sequential and year-over-year revenue growth since its launch on JTV in October 2023[35]. - The C Wonder Brand performed well in its launch year and is expected to continue increasing retail sales volume in 2025 and beyond[35]. - The company plans to continue its growth strategy through organic growth, developing new brands, and acquiring strategically important brands[33][35]. - The company expects growth through expansion of licensing activities and social media e-commerce platforms, including ORME[114]. Brand Portfolio and Licensing - The company launched the Longaberger Brand on ORME and introduced the TowerHill by Christie Brinkley and LB70 by Lloyd Boston brands in 2024[19][34]. - Xcel's brand portfolio includes Halston, Ripka, C Wonder, TowerHill, LB70, Longaberger, and Isaac Mizrahi, among others[25]. - Net licensing revenue from Qurate accounted for approximately 44% of total net revenue for the year ended December 31, 2024, compared to 34% for 2023[47]. - The Halston Master License generated net licensing revenue of approximately 31% of total net revenue for the year ended December 31, 2024, up from 9% in 2023[50]. - The Halston Master License has a term of 25 years, including an initial five-year period followed by a 20-year period[48]. Financial Condition and Risks - The company incurred net losses of approximately $22.6 million and $22.2 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of approximately $76.2 million as of December 31, 2024[77]. - The company may require significant additional cash to satisfy working capital requirements and expand operations, which could limit growth potential[76]. - The company has a dependency on a limited number of licensees for revenue, which poses a risk if any of these licensees face financial difficulties[90]. - The company is subject to risks related to its debt obligations, which could impair liquidity and financial condition if not managed properly[79]. - The company has identified material weaknesses in its internal controls over financial reporting as of December 31, 2024, and is developing a remediation plan[85]. Market Environment and Competition - The retail environment is changing, with major retailers consolidating and potentially reducing purchases from the company, impacting sales[112]. - Intense competition in the apparel, fashion, and jewelry industries may lead to pricing pressures and reduced profit margins, impacting the company's sales and profitability[126][128]. - The company faces risks from potential economic downturns, which could adversely affect consumer spending and overall business performance[169]. Operational Challenges - The company is subject to various federal, state, and local regulations, and believes it is in compliance with all applicable laws[68]. - The company faces numerous risks associated with acquisitions, joint ventures, and collaborations, including unanticipated costs and integration challenges[120]. - The company relies significantly on information technology systems, and any failure or security lapse could have a material adverse effect on its operations[185]. - The company has experienced cybersecurity incidents, including an unsuccessful ransomware attack in February 2024, which could disrupt business operations[188]. Employee and Management - The Company had 21 employees as of December 31, 2024, and values its relationship with its employees[67]. - The company is dependent on key executives, including the CEO, for implementing business plans and growth strategies[118]. Stock and Shareholder Matters - As of April 5, 2025, the combined voting power of the company's directors and executive officers was approximately 40% of its voting securities, allowing management significant influence over shareholder matters[143]. - The company does not anticipate paying cash dividends on its common stock in the foreseeable future, planning instead to retain earnings for operations and acquisitions[163]. - The issuance of shares upon exercise of outstanding warrants and options could substantially dilute existing stockholders' percentage ownership[160]. Regulatory and Economic Factors - Changes in U.S. and foreign trade regulations, including tariffs, could have a material adverse effect on the company's operations and financial condition[174]. - The company is subject to changes in U.S. and foreign government administrative policy, which could adversely affect its business and financial condition[176]. - Changes in effective tax rates could adversely affect the company's results, particularly due to the 2017 Tax Cuts and Jobs Act, which may increase taxable income[180]. Real Estate and Lease Agreements - The company has entered into a lease agreement for approximately 12,000 square feet of office space in New York, effective February 29, 2024, expiring in 2031[206]. - The company currently leases approximately 29,600 square feet of office space at a former location, with the lease expiring on October 30, 2027, and has subleased this space to a third party[207].