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XCel Brands (XELB)
NASDAQ:XELB
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XCel Brands
(NASDAQ:XELB)
44Neutral
XCel Brands (XELB) vs. S&P 500 (SPY)
Market Cap
$10.32M
Dividend YieldN/A
Average Volume (3M)85.07K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-52.20%
EPS Growth-0.80%
CountryUS
Employees34
SectorConsumer Cyclical
Sector Strength51
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-10.36
Shares Outstanding2,372,767
10 Day Avg. Volume120,610
30 Day Avg. Volume85,067
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.81
Price to Cash Flow (P/CF)-4.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.75Price Target Upside160.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
XCel Brands Business Overview & Revenue Model
Company DescriptionXCel Brands, Inc. (XELB) is a leader in the design, production, and marketing of consumer brands, specializing in apparel, footwear, accessories, and home goods. The company operates in the fashion and retail sectors, leveraging its expertise in brand management and development to create and distribute high-quality products across various platforms, including e-commerce and traditional retail channels.
How the Company Makes MoneyXCel Brands generates revenue primarily through the licensing of its owned and managed brands, which include well-known names in the fashion industry. The company earns money by developing and managing these brands and entering into licensing agreements with manufacturers and retailers who produce and sell products under these brand names. Additionally, XCel collaborates with various retail partners to create exclusive collections, enhancing its brand visibility and sales. The company's revenue streams are bolstered by strategic partnerships and collaborations with media and entertainment companies, which help in expanding the reach and market presence of its brands.
XCel Brands Financial Statement Overview
Summary
XCel Brands faces significant financial challenges, with a steep decline in revenue and persistent losses. The company's balance sheet shows moderate leverage but declining equity and assets. Negative cash flows highlight liquidity issues, raising concerns about sustainability without strategic changes.Income Statement
XCel Brands is experiencing significant revenue decline, with a TTM revenue of $7.83M compared to $17.76M in the previous year. The company shows negative margins across the board, with a gross profit margin of 42.7% but substantial net and EBIT losses, indicating operational challenges.40
Negative
Balance Sheet
The company's balance sheet shows a relatively high debt-to-equity ratio of 0.22, reflecting moderate leverage. The equity ratio is healthy at 68.4%. However, the declining equity and asset base from previous years indicate deteriorating financial stability.45
Neutral
Cash Flow
XCel Brands records negative free cash flow in the TTM period, with operating cash flow also negative. This highlights liquidity issues. Although financing activities have provided cash inflows, the overall cash flow position is concerning due to consistent negative free cash flow.35
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.83M | 17.75M | 25.78M | 37.93M | 29.45M | 41.73M | Gross Profit |
| 3.35M | 10.84M | 17.80M | 27.27M | 23.99M | 31.45M | EBIT |
| -10.59M | -20.64M | -22.27M | -11.18M | -3.46M | 2.03M | EBITDA |
| -16.75M | -13.69M | 2.68M | -7.24M | -10.91M | 1.10M | Net Income Common Stockholders |
| -22.11M | -21.05M | -5.36M | -13.03M | -13.09M | -3.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.84M | 3.00M | 4.61M | 4.48M | 4.96M | 4.64M | Total Assets |
| 138.06M | 71.66M | 88.94M | 125.78M | 123.05M | 143.19M | Total Debt |
| 19.57M | 10.00M | 7.21M | 36.49M | 27.21M | 31.25M | Net Debt |
| 10.74M | 7.00M | 2.61M | 32.01M | 22.25M | 26.61M | Total Liabilities |
| 38.18M | 23.49M | 18.80M | 50.84M | 36.80M | 44.74M | Stockholders Equity |
| 99.88M | 50.03M | 70.81M | 74.28M | 85.75M | 98.10M |
| Cash Flow | Free Cash Flow | ||||
| -7.17M | -6.64M | -14.45M | -7.69M | 2.44M | -6.46M | Operating Cash Flow |
| -7.04M | -6.54M | -14.18M | -6.56M | 3.19M | 3.50M | Investing Cash Flow |
| -267.00K | 209.00K | 44.52M | -4.79M | -702.00K | -10.34M | Financing Cash Flow |
| 6.10M | 4.73M | -30.95M | 10.51M | -2.17M | 2.27M |
XCel Brands Technical Analysis
Positive
3.75
Price Trends
3.64
Positive
4.97
Negative
6.01
Negative
Market Momentum
<0.01
Negative
57.25
Neutral
81.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XELB, the sentiment is Positive. The current price of 3.75 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 3.64, and below the 200-day MA of 6.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XELB.
XCel Brands Risk Analysis
XCel Brands disclosed 46 risk factors in its most recent earnings report. XCel Brands reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
XCel Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.31B | 7.05 | 57.76% | ― | 3.53% | 24.55% | |
67 Neutral | $3.86B | 5.64 | 13.79% | 0.22% | -4.83% | 45.23% | |
60 Neutral | $5.89B | 268.47 | 7.53% | 0.13% | ― | ― | |
59 Neutral | $12.68B | 11.14 | 0.97% | 3.72% | 1.33% | -21.21% | |
55 Neutral | ― | 12.60% | ― | ― | ― | ||
50 Neutral | $6.42B | ― | -16.13% | 2.19% | -8.42% | 57.91% | |
44 Neutral | $10.32M | ― | -47.20% | ― | -52.20% | -0.80% |
* Consumer Cyclical Sector Average
Performance Comparison
XELB
XCel Brands
3.75
-3.95
-51.30%
CROX
Crocs
109.51
-33.51
-23.43%
PVH
PVH
66.94
-72.24
-51.90%
VFC
VF
16.32
1.54
10.42%
LB
LandBridge Company LLC Class A
78.51
55.62
242.99%
ICON
Icon Energy Corp.
0.10
-3.18
-96.95%
XCel Brands Earnings Call Summary
Earnings Call Date: Dec 20, 2024 | % Change Since: -6.25% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there were significant improvements in non-GAAP earnings, adjusted EBITDA, and various brand performances, there were also notable declines in revenue and net losses impacted by both strategic divestitures and natural disruptions. The new term loan agreement is a positive step towards improving liquidity.Highlights
Improvement in Non-GAAP Earnings and Adjusted EBITDA
Non-GAAP earnings improved by approximately 56% from last year, and adjusted EBITDA improved by approximately 26% from the third quarter of 2023.
Judith Ripka Brand Growth
Judith Ripka business royalties increased by 98% from the second quarter and almost 500% year-over-year growth.
C. Wonder Brand Performance
Retail sales for C. Wonder on HSN increased by 60% over last year despite disruptions caused by hurricanes.
Tower Hill by Christie Brinkley Success
The brand exceeded launch plan by 90% during its third quarter on HSN.
New Term Loan Agreement
A new $10 million term loan agreement provided approximately $3.5 million of additional liquidity and increased working capital by $4.5 million.
Lowlights
Decline in Total Revenue
Total revenue for the current quarter was $1.9 million, a decrease of approximately $0.7 million from the third quarter of 2023.
Impact of Hurricanes on Sales
Hurricanes disrupted HSN business causing about $450,000 to $500,000 in lost revenue.
Net Loss for the Current Quarter
Net loss for the current quarter was approximately $9.2 million, including $7.8 million of non-cash charges.
Decrease in Licensing Revenue
Year-to-date licensing revenue declined by approximately $0.5 million to $6.5 million due to the sale of the Lori Goldstein brand.
Company Guidance
During Xcel Brands' Q3 2024 earnings call, the company provided optimistic guidance for the remainder of the year and 2025. The non-GAAP earnings improved by approximately 56% compared to the previous year, and adjusted EBITDA increased by 26% from Q3 2023. Despite a $0.7 million decline in total revenue to $1.9 million, primarily due to the sale of the Lori Goldstein brand, strategic cost reduction actions and increased revenues from other brands like C. Wonder and Tower Hill by Christie Brinkley buoyed the bottom line. The company anticipates strong retail sales growth into 2025, with new product categories launching for brands like C. Wonder and Judith Ripka demonstrating impressive growth, with a 98% increase over the previous quarter. The company also highlighted its new cost structure aiming for an annual run rate reduction to approximately $11 million, with further reductions anticipated. Looking forward, Xcel Brands projects improved EBITDA for Q4 2024 and continuous growth into next year with a robust pipeline of brand launches.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.