Xcel Brands Inc (XELB) Q1 2025 Earnings Call Highlights: Strategic Moves and Financial ...
Total Revenue Q4 2024: $1.2 million.
Total Revenue FY 2024: $8.3 million.
Total Revenue Q1 2025: $1.3 million.
Adjusted EBITDA Q4 2024: Negative $0.8 million, a 31% improvement over last year.
Adjusted EBITDA FY 2024: Negative $3.5 million, a 40% improvement over the prior fiscal year.
Adjusted EBITDA Q1 2025: Negative $0.7 million, a 56% improvement over the prior year quarter.
Net Loss Q4 2024: Approximately $7.1 million or minus $3 per share on a GAAP basis.
Net Loss FY 2024: Approximately $22.4 million or $9.84 per share on a GAAP basis.
Net Loss Q1 2025: Approximately $2.8 million or minus $1.18 per share on a GAAP basis.
Operating Expenses Q1 2025: Approximately $2.3 million, 40% lower than the prior year period.
Stockholders' Equity as of March 31, 2025: Approximately $26 million.
Unrestricted Cash as of March 31, 2025: Approximately $0.3 million.
Long-term Debt as of March 31, 2025: $8.7 million.
Refinanced Term Debt April 2025: Net increase of approximately $3 million in liquidity, current term debt $13.6 million.
Warning! GuruFocus has detected 6 Warning Signs with XELB.
Release Date: June 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Xcel Brands Inc (NASDAQ:XELB) closed a strategic transaction with United Trademark Group, enhancing global distribution and supply chain capabilities.
The partnership with UTG provided $3 million in liquidity and reduced interest and principal payments by over $1 million annually through March 2027.
Social media reach expanded significantly from 5 million to 45 million followers, enhancing brand visibility and potential for video commerce.
C. Wonder and Christie Brinkley brands are the fastest-growing on HSN, indicating strong market performance.
The company has successfully reduced operating costs by nearly 50% year over year, improving financial efficiency.
Total revenues for Q4 2024 and the full fiscal year were significantly lower compared to the previous year due to the sale of the Lori Goldstein brand and exit from wholesale operations.
The company reported an adjusted EBITDA loss of $792,000 in Q4 2024, although it was an improvement over the previous year.
Net loss for Q1 2025 was approximately $2.8 million, reflecting ongoing financial challenges.
The impact of tariffs and the consolidation of HSN's operations into QVC's headquarters pose potential risks to future performance.
Liquidity remains a concern with only $0.3 million in unrestricted cash as of March 31, 2025, despite recent refinancing efforts.
Q: Robert, you mentioned an adjusted EBITDA forecast for 2025 between $1 million and $2.5 million. Does this include the impact of tariffs? A: Yes, it includes potential impacts from tariffs and any disruptions from HSN's move from Tampa to West Chester, PA. We are working on mitigating measures, including domestic production options.
Q: Jim, you mentioned a run rate of $1 million. Is this per month? A: The run rate refers to overhead costs, which are less than $2.5 million per quarter, or about $9 million annually.
Q: Can you remind us of the guarantees from G-III on Halston, and when do those royalties start? A: The guaranteed minimum under the license is $1.7 million per year. We plan on the minimums with some pick-up in Q2, and expect to exceed minimums as they ship for fall.
Q: How do you view your liquidity needs for this year, especially with new brand launches? A: Our liquidity is currently good. We have more transactions in the pipeline and will address additional capital needs if they arise. For now, we believe we are okay.
Q: Can you discuss the revenue potential of your recently launched brands? A: All brands are exciting, especially Cesar Millan's pet products, which we expect to be strong. Gemma Stafford and Jenny Martinez also have significant potential in retail and e-commerce. These brands collectively reach over 30 million social media followers.
Q: Regarding the Isaac Mizrahi brand, are you considering monetizing your minority interest? A: Isaac Mizrahi has been a great brand for us. We oversee the QVC business and will continue to support the brand as needed. WHP partners handle third-party licensing.
Q: What types of acquisitions are you interested in? A: We are interested in brands with significant social media followings and media companies that can extend our reach.
Q: How do you view the revenue growth associated with the increase in social media followers? A: Each opportunity has the potential to generate $5 million to $10 million of royalty income per year. It will take time to ramp up, but we are optimistic about the potential.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
32 minutes ago
- Yahoo
1 Russell 2000 Stock with Promising Prospects and 2 to Approach with Caution
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns. The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we're here to guide you toward the right ones. That said, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up. Market Cap: $674.7 million Committed to clean-label foods, SunOpta (NASDAQ:STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products. Why Are We Cautious About STKL? Annual revenue declines of 4.2% over the last three years indicate problems with its market positioning Smaller revenue base of $742.7 million means it hasn't achieved the economies of scale that some industry juggernauts enjoy Gross margin of 16% is an output of its commoditized products SunOpta is trading at $5.75 per share, or 29.1x forward P/E. To fully understand why you should be careful with STKL, check out our full research report (it's free). Market Cap: $343.8 million With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories. Why Do We Think MOV Will Underperform? Annual sales declines of 6% for the past two years show its products and services struggled to connect with the market Operating margin of 4.4% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Movado's stock price of $15.99 implies a valuation ratio of 0.5x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why MOV doesn't pass our bar. Market Cap: $1.27 billion Founded during the emergence of Big Oil in Texas, DXP (NASDAQ:DXPE) provides pumps, valves, and other industrial components. Why Are We Fans of DXPE? Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient Share repurchases over the last two years enabled its annual earnings per share growth of 34.6% to outpace its revenue gains Improving returns on capital reflect management's ability to monetize investments At $80.99 per share, DXP trades at 14.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
32 minutes ago
- Yahoo
3 Overrated Stocks Walking a Fine Line
The stocks in this article are all trading near their 52-week highs. This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance. But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. All that said, here are three stocks that are likely overheated and some you should look into instead. One-Month Return: +5.9% Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms. Why Does NYT Give Us Pause? Performance surrounding its subscribers has lagged its peers Anticipated sales growth of 6.7% for the next year implies demand will be shaky Eroding returns on capital suggest its historical profit centers are aging The New York Times is trading at $55.75 per share, or 26x forward P/E. To fully understand why you should be careful with NYT, check out our full research report (it's free). One-Month Return: +6% Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry. Why Do We Avoid MYRG? Flat backlog over the past two years has disappointed and shows fewer customers signed long-term contracts Earnings per share fell by 1.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Eroding returns on capital suggest its historical profit centers are aging At $162 per share, MYR Group trades at 26.2x forward P/E. Read our free research report to see why you should think twice about including MYRG in your portfolio, it's free. One-Month Return: +8.2% Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions. Why Does VRSK Fall Short? Annual revenue growth of 1.9% over the last five years was below our standards for the business services sector Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.7% annually Verisk's stock price of $320.59 implies a valuation ratio of 44.4x forward P/E. Check out our free in-depth research report to learn more about why VRSK doesn't pass our bar. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
32 minutes ago
- Yahoo
1 Safe-and-Steady Stock Worth Your Attention and 2 to Steer Clear Of
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. That said, here is one low-volatility stock that could offer consistent gains and two that may not deliver the returns you need. Rolling One-Year Beta: 0.15 Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices. Why Does KDP Worry Us? Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.5% over the last three years was below our standards for the consumer staples sector Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5.7 percentage points ROIC of 5.7% reflects management's challenges in identifying attractive investment opportunities Keurig Dr Pepper is trading at $32.63 per share, or 15.8x forward P/E. Check out our free in-depth research report to learn more about why KDP doesn't pass our bar. Rolling One-Year Beta: 0.39 Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies. Why Are We Hesitant About CRL? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Forecasted revenue decline of 2.6% for the upcoming 12 months implies demand will fall off a cliff Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Charles River Laboratories's stock price of $140 implies a valuation ratio of 14.8x forward P/E. Read our free research report to see why you should think twice about including CRL in your portfolio, it's free. Rolling One-Year Beta: 0.65 Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores. Why Could ROST Be a Winner? Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth Same-store sales growth averaged 3.5% over the past two years, showing it's bringing new and repeat shoppers into its stores Stellar returns on capital showcase management's ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities At $142.24 per share, Ross Stores trades at 21.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
