In This Article:
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Total Revenue: $1.9 million for Q3 2024, a decrease of approximately $0.7 million from Q3 2023.
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Licensing Revenue Decline: $8.9 million decline due to the sale of the Lori Goldstein brand.
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Non-GAAP Earnings Improvement: Improved by approximately 56% from last year.
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Adjusted EBITDA Improvement: Improved by approximately 26% from Q3 2023.
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Net Loss: $9.2 million or minus $0.39 per share for the current quarter.
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Non-GAAP Net Loss: $1.3 million or minus $0.06 per share, a 56% improvement from Q3 2023.
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Adjusted EBITDA: Negative $1 million for the current quarter.
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Direct Operating Costs: $2.8 million for the current quarter, down by 50% from the prior year quarter.
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Cash and Cash Equivalents: Approximately $1 million as of September 30, 2024.
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New Term Loan Agreement: $10 million, providing approximately $3.5 million of additional equity.
Release Date: December 23, 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) improved its non-GAAP earnings by approximately 56% from the previous year.
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The C Wonder brand performed well on HSN, with retail sales up 60% over the previous year.
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Tower Hill by Christie Brinkley exceeded its launch plan by 90% and is expected to continue strong sales growth into 2025.
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The company achieved a 98% growth in royalties for its 'due to thrift' business from the second quarter.
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Xcel Brands Inc (NASDAQ:XELB) has reduced its operating costs significantly, achieving a 50% reduction in direct operating costs for the current quarter compared to the previous year.
Negative Points
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Total revenue for the current quarter decreased by approximately $0.7 million compared to the third quarter of 2023.
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The sale of the Lori Goldstein brand led to an $8.9 million decline in net licensing revenues.
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The company experienced disruptions in its HSN business due to two hurricanes, impacting sales and fulfillment.
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Xcel Brands Inc (NASDAQ:XELB) reported a net loss of approximately $9.2 million for the current quarter.
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The company recognized a $6.3 million non-cash charge related to a contractual contingent obligation.
Q & A Highlights
Q: Can you provide more details on how Halston is performing and expectations for the future? A: Robert D'Loren, CEO, mentioned that the Halston collection is off to a good start, although sales reports for shoes and bags are not yet available. They are optimistic about the brand's performance in 2025, particularly in sportswear, outerwear, handbags, and footwear.