Xcel Brands, Inc. Announces Fourth Quarter and Year-End 2024 Financial Results, Shows Improvements as a Result of Its “Project Fundamentals” Restructuring Program

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].