The following is a summary of the Xcel Brands, Inc. (XELB) Q4 2023 Earnings Call Transcript:
Financial Performance:
Xcel Brands reported Q4 revenue of $2.3 million, a decrease of $1.8 million from Q4 2022 due to diminished product sales, but saw an increase in net licensing revenue.
Total revenue for 2023 was $17.8 million, down $8 million from the previous year due to decreases in both licensing revenue and product sales.
Direct operating costs and expenses for Q4 were at $5.5 million, down by $2.9 million or 34% from Q4 2022 due to restructuring.
The company had a net loss of approximately $6.8 million or $0.34 per share in Q4 and an annual net loss of $21.1 million or minus $1.07 per share for 2023.
Business Progress:
Xcel Brands completed its restructuring plan and outsourced its wholesale operations to industry-leading licensing partners.
The new Tower Hill brand by Christie Brinkley is set to launch on HSN next month.
C. Wonder by Christian Siriano generated $12.5 million retail sales in its first nine months and expects a rise in sales volume in 2024.
The company launched its video and social commerce platform, ORME, with expectations of impacting video and social commerce in the US.
Xcel Brands expects to return to profitability in 2024 due to progress in Project Fundamentals and organic growth in their brands.
The company's stocks are undervalued, selling less than one to three quarter times EBITDA, presenting potential investment opportunities.
With the completion of the business transformation, Xcel Brands expects transitional growth in 2024 and impactful growth in 2025.
More details: Xcel Brands IR
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