In This Article:
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Total Revenue: $3 million for Q2 2024, a decrease of $3.8 million from Q2 2023.
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Net Licensing Revenue: Increased by 16% year-over-year for Q2 2024.
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Net Income: $0.2 million or $0.01 per share for Q2 2024.
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Non-GAAP Net Loss: $0.3 million or minus $0.01 per share for Q2 2024, an 85% improvement from Q2 2023.
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Adjusted EBITDA: Negative $40,000 for Q2 2024, a 95% improvement from Q2 2023.
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Direct Operating Costs and Expenses: $3.1 million for Q2 2024, down 40% from Q2 2023.
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Cash and Cash Equivalents: $1.7 million as of June 30, 2024.
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Net Gain from Lori Goldstein Brand Sale: $3.8 million, reducing liabilities by $6 million.
Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Xcel Brands Inc (NASDAQ:XELB) reported a 16% year-over-year increase in net licensing revenues for the second quarter.
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The company achieved an 85% improvement in non-GAAP earnings compared to the previous year.
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The C. Wonder brand exceeded sales expectations on HSN by 6% in the second quarter.
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The new brand, Tower Hill by Christie Brinkley, launched successfully on HSN, surpassing plans by 40%.
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Xcel Brands Inc (NASDAQ:XELB) recognized a net gain of $3.8 million from the sale of the Lori Goldstein brand, reducing liabilities by $6 million.
Negative Points
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Total revenue for the second quarter decreased by approximately $3.8 million compared to the same period in 2023.
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The company experienced a decline in net product sales to effectively zero due to exiting wholesale operations.
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Despite improvements, adjusted EBITDA was still negative $40,000 for the current quarter.
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The Isaac Mizrahi brand's performance was down from the previous year due to changes in QVC's remote show policies.
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The Halston brand's revenue ramp-up has been delayed, impacting expected contributions for the current year.
Q & A Highlights
Q: Can you give me a sense of how well the Christie Brinkley brand, Tower Hill, is performing heading into Q3? Are you anticipating licensing revenue from Halston in Q3? A: Tower Hill exceeded plan by 40% at launch, and we anticipate doubling the business in 2025. We expect licensing revenue from Halston, as there are minimum guaranteed royalties, and potential for exceeding those minimums depending on shipments of shoes and bags.
Q: What products are being rolled out under the Halston brand, and what is the timeline? A: Halston is launching apparel across multiple categories, with handbags and shoes introduced in August. We expect to see increased royalties from these activities and third-party licenses.