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Xcel Brands Q2 revenue falls on brand divestiture

Xcel Brands Q2 revenue falls on brand divestiture


Overview

  • US media and consumer products firm's Q2 revenue fell 14% yr/yr on brand divestiture

  • Q2 net loss narrowed to $2.5 mln from $4.0 mln a year earlier

  • Adjusted EBITDA improved from Q1, driven by new brand launches and lower expenses


Outlook

  • Company did not provide specific guidance for future quarters or the full year


Result Drivers

  • BRAND DIVESTITURE - Co said revenue decline was mainly due to sale of Judith Ripka brand

  • NEW BRAND LAUNCHES - Co said Adjusted EBITDA improvement was driven by product launch of two influencer-led brands, per CEO Robert W. DLoren

  • LOWER OPERATING EXPENSES - Co said further reductions in operating expenses contributed to improved Adjusted EBITDA


Company press release: ID:nGNX4L7lCn


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$1.12 mln

$1.80 mln (1 Analyst)

Q2 Adjusted Loss Per Share

Beat

$0.21

$0.38 (1 Analyst)

Q2 Loss Per Share

$0.40

Q2 Net Loss Attributable to Xcel Brands, Inc. Stockholders

$2.48 mln

Q2 Operating Income

-$1.59 mln

Q2 Pretax Loss

$2.46 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the entertainment production peer group is "buy"

  • Wall Street's median 12-month price target for Xcel Brands Inc is $4.00, about 292.2% above its August 12 closing price of $1.02


Reuters Recommended Reads

  • Aug 12 - Lulu's Fashion Lounge Q2 revenue falls on fewer orders and higher returns

  • Aug 13 - Tapestry forecasts muted annual sales as Kate Spade struggles; shares tumble

  • Aug 12 - Fossil Group Q2 revenue falls 4.9% on store closures


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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