Company Overview - Xcel Brands (NASDAQ: XELB) is a media and consumer products company focused on building influencer-driven brands through social commerce and livestreaming [2][6] - The company has generated over $5 billion in retail sales via livestreaming and interactive television, with a social media presence of over 35 million followers [6] Partnership Announcement - Xcel Brands has announced a partnership with Gemma Stafford, an internationally renowned baker and chef, to launch a new bakeware, food, and home brand [2][5] - This collaboration aims to provide professional-quality tools and delicious foods to home bakers while maintaining design quality and affordability [3][5] Product Line Development - This marks Gemma Stafford's first venture into developing her own product line, which will include bakeware, cookware, kitchen tools, and home essentials [3][4] - The product line is designed to blend functionality with timeless style, inspired by Stafford's Irish heritage and creativity [3][4] Market Potential - The home baking and entertaining market presents strong potential for a brand focused on quality, accessibility, and expertise [5] - The partnership aims to establish itself in the growing culinary market by addressing the needs of home cooks and entertainers [5] Launch Timeline - The new brand is set to launch in Spring 2026, with availability through select retailers, e-commerce platforms, and live shopping channels [5][6]

Core Insights - Xcel Brands is launching a new pet brand, "Trust-Respect-Love by Cesar Millan," in partnership with Cesar Millan, aimed at redefining the pet industry through high-quality, purpose-driven products [1][6] - The brand will focus on enhancing the bond between pets and their owners, emphasizing the core values of trust, respect, and love [2][4] - The collaboration combines Cesar Millan's expertise in canine psychology with Xcel Brands' strengths in brand building and social commerce, aiming to deliver innovative and educational products to pet owners globally [3][4] Company Overview - Xcel Brands, Inc. is a media and consumer products company engaged in designing, licensing, marketing, and selling various consumer products, including apparel and home goods [7] - The company has generated over $5 billion in retail sales through livestreaming and digital channels, with a social media presence of over 27 million followers [7] - Xcel Brands aims to pioneer modern consumer product sales strategies, utilizing interactive television, digital live-stream shopping, and e-commerce [7] Industry Context - The new brand will serve as an educational platform, providing expert guidance alongside premium pet products, strategically positioned to set new trends in the expanding pet industry [6] - The brand will be showcased at the Global Pet Expo, a key event in the pet industry, indicating its commitment to engaging with the pet owner community [6]

Core Viewpoint - Xcel Brands, Inc. will implement a 1-for-10 reverse stock split effective March 25, 2025, to comply with Nasdaq's minimum bid price requirement [1][7]. Company Actions - The reverse stock split will combine every ten shares of common stock into one share, maintaining the ownership percentage of stockholders, except for fractional shares [3][6]. - Stockholders entitled to fractional shares will receive a cash payment instead of fractional shares [3]. - The reverse stock split was approved by stockholders at a special meeting on March 12, 2025, allowing the Board to determine the split ratio [5]. Stock Information - Post-split, Xcel Brands' common stock will continue to trade on Nasdaq under the symbol "XELB" with a new CUSIP number [2]. - The number of shares underlying outstanding stock options and warrants will be proportionately adjusted along with their exercise prices [4]. Company Overview - Xcel Brands is a media and consumer products company specializing in livestream shopping and social commerce, with a portfolio that includes brands like Halston and Judith Ripka [10][11]. - The company has generated over $5 billion in retail sales through livestreaming and interactive television [11].

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was approximately $1.9 million, a decrease of about $0.7 million from Q3 2023 [21] - Non-GAAP earnings improved by approximately 56% from the previous year, with adjusted EBITDA improving by approximately 26% from Q3 2023 [11] - The net loss for Q3 2024 was approximately $9.2 million, compared to a net loss of $5.1 million in the prior year quarter [27] Business Line Data and Key Metrics Changes - The C. Wonder brand saw a 60% increase in retail sales over the previous year, despite disruptions from hurricanes [12] - Judith Ripka business royalties increased significantly, achieving 98% growth from Q2 2024 and almost 500% year-over-year growth [15] - The company recognized approximately $0.4 million from the sale of remaining Longaberger brand inventory, with no inventory left on books [23] Market Data and Key Metrics Changes - The company expects retail sales volume to continue strong growth into 2025, particularly on HSN and with other retailers [13] - The impact of hurricanes on HSN business was estimated at about $450,000 to $500,000 [48] Company Strategy and Development Direction - The company is transitioning to a core working capital licensing business focused on live streaming over TV and social media [11] - Plans to launch additional new categories in footwear and handbags in spring 2025 are underway [13] - The Orme platform is seen as a transformative force in video and social commerce, with a goal to democratize the influencer economy [19] Management Comments on Operating Environment and Future Outlook - Management anticipates improved EBITDA in Q4 2024 and continued improvement going forward due to a new cost structure and projected revenue growth [29] - The company remains optimistic about the performance of the Halston brand and expects to introduce new products in 2025 [39][40] Other Important Information - The company entered into a new $10 million term loan agreement, providing additional liquidity [32] - The company has reduced operating costs significantly, with potential for further reductions of $500,000 to $750,000 in Q1 2025 [66] Q&A Session Summary Question: How is Halston performing? - Management believes the Halston collection is off to a good start, with expectations for sportswear, outerwear, handbags, and footwear [37] Question: What are the prospects for 2025 with Halston? - Management remains optimistic about Halston's performance and is comfortable with the product adjustments made [39] Question: Can you explain the situation with Isaac Mizrahi? - A conservative approach was taken regarding the asset value of Isaac Mizrahi due to challenges in getting him back in studio [42] Question: Will Q4 show positive adjusted EBITDA? - While Q4 is expected to show improvement, it is uncertain if it will return to profitability [46] Question: How much revenue was impacted by the hurricanes? - The estimated impact was about $450,000 to $500,000, but management is hopeful for normal returns in Q4 [48] Question: What is the status of additional brand launches? - A new home category brand is set to launch in March 2025, with several others in the pipeline [50] Question: What is the outlook on inventory levels at retailers? - Over-inventoried retailers may impact sales, but management does not foresee a material impact on Halston at this time [60] Question: What are the expectations for Orme's brand trajectory? - Orme aims to onboard luxury aspirational brands, with a goal of maintaining higher average order values [63] Question: What additional cost reductions are planned? - Management is looking to cut an additional $500,000 to $750,000 in operating expenses without disrupting operations [66] Question: Will there be a need for another capital raise? - Future capital needs depend on transactions in the pipeline, with only one potentially requiring capital [68]

Core Insights - Xcel Brands Inc. (XELB) reported a significant decline in net sales, dropping 28% to $1.9 million from $2.6 million in the prior-year quarter, primarily due to reduced licensing revenue following the divestiture of the Lori Goldstein brand and delayed sales from canceled shows [1][12] - The company ended the quarter with cash and cash equivalents of $0.2 million, long-term debt of $3.3 million, and stockholders' equity of $35 million, indicating a stable financial position despite challenges [2] - Adjusted EBITDA loss improved to $1 million from a loss of $1.4 million in the previous year, attributed to successful business restructuring and new long-term licensing agreements [5][12] Financial Performance - Gross profit decreased by 37.6% year over year to $1.5 million, with gross margin contracting by 1280 basis points to 78.7% [14] - Total direct operating costs and expenses were reduced by 50% year over year to $2.8 million, reflecting cost management efforts [14] - The adjusted loss per share was 6 cents, better than the Zacks Consensus Estimate of a loss of 12 cents and an improvement from a loss of 15 cents in the year-ago quarter [13] Future Outlook - The company is positioned for future growth with improvements in operating performance and a strong pipeline of planned brand launches in 2025 [3] - A new term loan agreement secured in November 2024 for $10 million provided approximately $5 million in additional liquidity, enhancing working capital by about $6 million [6]

Net loss of $9.2 million for the quarter inclusive of a $6.3 million non-cash charge for contingent obligation, compared with a net loss of $5.1 million for the prior year quarter.Net loss on a non-GAAP basis was $1.3 million for the quarter, representing a 56% improvement from the third quarter of 2023, and $3.4 million for the nine months ended September 30, 2024, representing a 60% improvement from the prior year comparable period.Adjusted EBITDA for the quarter was negative $1.0 million, compared with A ...

NEW YORK, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), today announced that it will report its third quarter 2024 financial results on December 20, 2024. The Company will hold a conference call with the investment community on December 23, 2024, at 5:00 p.m. ET. A webcast of the conference call will be available live on the Investor Relations section of Xcel’s website at https://xcelbrands.co/pages/events-and-presentations or directly at https://edge.media-se ...

XCel Brands (XELB) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 88.89%. A quarter ago, it was expected that this brand management company would post a loss of $0.16 per share when it actually produced a loss of $0.09, delivering a surprise of 43.75%. Over the last four quarters, the compa ...

Financial Performance - Current quarter net revenue decreased approximately $3.8 million to $3.0 million from $6.8 million for the prior year quarter, primarily due to a $4.2 million decrease in net product sales [99]. - Net income for the current quarter was $0.2 million, compared to a net loss of $3.5 million for the prior year quarter [107]. - The company reported a net loss of $6.1 million for the current six months, an improvement from a net loss of $9.1 million in the prior year six months [124]. - Non-GAAP net loss for the current quarter was approximately $0.3 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $2.1 million, or $0.10 per diluted share, for the prior year quarter [108]. - Non-GAAP net loss was approximately $2.1 million, or $0.10 per diluted share, compared to a non-GAAP net loss of $5.6 million, or $0.28 per diluted share, for the prior year six months [125]. Revenue Sources - Net licensing revenue increased approximately $0.4 million to $2.8 million in the current quarter, driven by new licensing agreements and the launch of the TowerHill brand [100]. - Net licensing revenue increased by approximately $0.4 million to $5.0 million in the current six months, driven by new licensing agreements, including the Halston Master License with G-III Apparel Group [116]. - Net product sales dropped from $8.2 million in the prior year six months to $0.1 million in the current six months, attributed to the exit from wholesale apparel and fine jewelry sales operations [115]. Cost Management - Cost of goods sold for the current quarter was less than $0.1 million, compared to $3.8 million for the prior year quarter, reflecting the exit from wholesale and direct-to-consumer operations [101]. - Direct operating costs and expenses decreased approximately $2.1 million to $3.1 million in the current quarter, attributed to the 2023 restructuring and reductions in staffing [102]. - Direct operating costs and expenses decreased by approximately $5.0 million from $12.1 million in the prior year six months to $7.1 million in the current six months, due to restructuring efforts [119]. - The restructuring initiatives are expected to provide approximately $22 million of annualized cost savings compared to the previous operating model [152]. Cash Flow and Liquidity - As of June 30, 2024, unrestricted cash and cash equivalents were $0.9 million, down from $3.0 million as of December 31, 2023 [128]. - The company incurred net cash used in operating activities of approximately $2.9 million for the six months ended June 30, 2024, compared to approximately $1.47 million in the prior year six months [130][135]. - The current six months net cash used in operating activities was $(6.18) million, with non-cash items of approximately $4.10 million and a net change in operating assets and liabilities of approximately $(0.80) million [136]. - Net cash provided by financing activities in the current six months was primarily attributable to $1.90 million of net proceeds from equity issuance transactions [139]. - The Company raised approximately $1.9 million in total net proceeds from the public offering and private placement of 3,579,064 shares of common stock [142]. Strategic Initiatives - The company aims to build a diversified portfolio of lifestyle consumer products brands through organic growth and strategic acquisitions [97]. - The Company plans to diversify its licensed products and distribution channels to reduce dependence on any particular retailer or market sector [149]. - Xcel's brands have generated over $5 billion in retail sales via live streaming and digital channels, reaching over 5 million social media followers [97]. Economic Environment - The Company continues to face headwinds from poor economic conditions, which may negatively impact demand for its products [153]. - The Company has no off-balance sheet arrangements that could materially affect its financial condition or results of operations [155]. Other Financial Matters - The company recognized a $3.80 million gain on the divestiture of the Lori Goldstein Brand, with non-cash consideration received [104]. - The Company has recorded a liability of $6.6 million related to the Lori Goldstein Earn-Out, which was based on royalties earned [146]. - The Company de-recognized approximately $1.03 million of accrued Lori Goldstein Earn-Out payments following the divestiture of the Lori Goldstein Brand [148].

Revenue and Income - For the three months ended June 30, 2024, the company reported revenue of $2,954,000, while for the six months ended June 30, 2024, revenue was $5,138,000[4] - The pretax net income for the three months ended June 30, 2024, was $195,000, but for the six months, there was a net loss of $6,099,000[4] - Adjusted EBITDA for the three months ended June 30, 2024, was $(40,000), and for the six months, it was $(1,612,000)[4] Asset Sales and Impairments - The company expects a one-time net gain of approximately $3.8 million from the sale of the Lori Goldstein assets, which positively impacted the results[3] - The company anticipates an additional impairment charge of approximately $1.2 million related to the exit of its prior principal offices[4] Financial Reporting and Compliance - The preliminary financial results are unaudited and subject to completion of financial closing procedures, indicating potential variability in final figures[5] - The company is classified as an emerging growth company, which may affect its financial reporting and compliance requirements[2] - The financial information includes non-GAAP measures, which should be considered alongside U.S. GAAP measures for a comprehensive understanding of performance[6] - The company has not yet finalized its financial results, and reliance on preliminary estimates should be cautious[5] Signatory Information - The report was signed by the Chief Financial Officer, James F. Haran, on July 24, 2024[11]