NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB), a media and consumer products company known for building influential, creator-led brands, today announced a strategic licensing partnership with TSC Product Lab to launch Mesa Mia by Jenny Martinez—a dynamic new food brand inspired by the bold flavors, rich traditions, and spirit of Latin cooking. Mesa Mia by Jenny Martinez will offer a curated line of food products designed to bring delicious, authentic meals to the kitchens of J ...

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]