Seth Burroughs Xcel Brands, Inc. sburroughs@xcelbrands.com About Xcel Brands Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel ...

Core Viewpoint - Xcel Brands announced a public offering of 2,181,818 shares at $1.10 per share and a concurrent private placement of 145,147 shares at $1.36 per share, with expected gross proceeds of approximately $2.6 million [1][2]. Group 1: Offering Details - The public offering consists of 2,181,818 shares priced at $1.10 each, while the private placement involves 145,147 shares sold to insiders at $1.36, matching the closing price on July 31, 2025 [1]. - The closing of the offering is anticipated on or about August 4, 2025, pending customary closing conditions [1]. Group 2: Financial Proceeds - The combined gross proceeds from both the public offering and private placement are expected to be around $2.6 million before deducting fees and expenses [2]. - The net proceeds will be utilized for brand development, working capital, and other general corporate purposes, including settling outstanding payables [2]. Group 3: Company Overview - Xcel Brands is a media and consumer products company focused on designing, licensing, and marketing branded consumer products, including apparel and home goods [5]. - The company has generated over $5 billion in retail sales through live streaming and digital channels, with a significant social media presence reaching over 43 million followers [5]. - Xcel Brands operates with a strategy that integrates interactive television, digital live-stream shopping, and social commerce to enhance consumer engagement [5].

Company Overview - Walmart is the world's largest retailer by revenue, utilizing scale and operational efficiency to offer a wide range of products at competitive prices [4] - The company employs an omnichannel strategy that integrates physical stores with digital platforms to enhance customer reach and convenience [4] - Walmart's extensive global presence and diversified offerings solidify its strong market position in the consumer defensive sector [4] Financial Performance - As of July 8, 2025, Walmart's market capitalization is $774.9 billion, with a trailing twelve months (TTM) revenue of $685.1 billion and a net income of $18.82 billion [2] - The company's dividend yield stands at 0.96%, and it has a forward price/earnings ratio of 37.4 [2][10] - Walmart's stock price increased by 39.9% over the past year, outperforming the S&P 500 by 28 percentage points during the same period [6] E-commerce Growth - Walmart's total sales grew by 4% year over year in the first quarter, while global e-commerce sales surged by 22%, marking the first profitable quarter for its e-commerce business [8] - E-commerce is expected to be a key growth driver for Walmart, contributing to both sales and margins [8] - The company is also exploring new profit streams such as membership and digital advertising, which are anticipated to enhance its margins [8] Investment Insights - Walmart has demonstrated significant stock performance, with its shares more than doubling in value over the past three years [5] - Despite a high price-to-earnings (P/E) ratio of nearly 42, Walmart is considered a long-term winner for both growth and income investors, being recognized as a Dividend King with 52 consecutive years of dividend increases [10]

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].