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1. Company Snapshot

1.a. Company Description

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States.The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston Brand, the C Wonder, and other brands, as well as manages the Longaberger brand.It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, wholesale, and e-commerce channels.


The company also offers live streaming, social media and other marketing, and public relations support for its brands.In addition, it markets the Mizrahi brand through www.isaacmizrahi.com; the Halston brand through www.halston.com; the Judith Ripka fine jewelry brand through www.judithripka.com; the C Wonder brand through www.cwonder.com; the Logo Lori Goldstein brand through www.lorigoldstein.com; and the Longaberger brand through www.longaberger.com.The company was founded in 2011 and is headquartered in New York, New York.

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1.b. Last Insights on XELB

Xcel Brands' recent performance was hindered by a 1-for-10 reverse stock split, which may have negatively impacted investor sentiment. Additionally, the company's recent earnings release was not available, but the recent partnerships with influencers such as Cesar Millan and Gemma Stafford may have been overshadowed by the reverse stock split. Furthermore, the company's focus on influencer-driven brands through social commerce and livestreaming may be subject to changing consumer preferences and market trends.

1.c. Company Highlights

2. Xcel Brands' Q3 2025 Earnings: Navigating Challenges and Opportunities

Xcel Brands reported net licensing revenues of $1,100,000 for Q3 2025, a decline from $1,500,000 in the same quarter last year, primarily due to cautious consumer spending and underperformance in the Halston license. The company's adjusted EBITDA loss was $653,000, a 38% improvement over Q3 2024. Direct operating costs decreased by 23% year-over-year to $2,200,000. The actual EPS came out at '-2.02', missing estimates at '-0.93'.

Publication Date: Nov -21

📋 Highlights
  • Equity Investment and Debt Reduction:: Management and insiders invested $2,000,000 in equity over 18 months, with $250,000 used to reduce First Eagle loan debt.
  • Adjusted EBITDA Improvement:: Q3 adjusted EBITDA loss narrowed to -$653,000 (38% improvement YoY from -$1,000,000).
  • Net Licensing Revenue Decline:: Q3 licensing revenue fell to $1,100,000 from $1,500,000 YoY due to Halston license underperformance.
  • Operating Cost Reduction:: Direct operating costs dropped 23% YoY to $2,200,000 and 36% for nine months to $6,300,000.
  • Balance Sheet Strength:: $17,000,000 in stockholders' equity and $1,500,000 in unrestricted cash as of Q3 2025.

Financial Performance and Outlook

The company's financial results reflect the challenges it faces in the current market environment. However, with the recent closing of a $2,000,000 net equity offering, Xcel Brands has strengthened its balance sheet, with stockholders' equity standing at approximately $17,000,000 as of September 30, 2025. Management is optimistic about the future, with plans to launch five new influencer-led brands in Q1 2026 and expand existing brands into new categories and sales channels.

New Developments and Growth Initiatives

Xcel Brands has been actively pursuing new business opportunities, including partnerships with influencers such as Cesar Millan, Gemma Stafford, Jenny Martinez, and Coco Rocha. The company's social media reach across its brand portfolio now stands at 46,000,000 people, with a goal to reach 100,000,000 followers by 2026. According to Robert W. D'Loren, the company expects sequential revenue growth in 2026 due to the rollout of new brands and existing brands' growth.

Valuation and Growth Prospects

Analysts estimate that Xcel Brands could reach $100 million in value on royalty flows if successful, with a goal to increase royalty income to $50 million over a multi-year period. Currently, the company's valuation metrics are as follows: P/S Ratio of 0.71 and EV/EBITDA of -0.7. With expected revenue growth of 77.3% next year, the stock may be poised for further upside. However, investors should be cautious about the company's current financial performance and the challenges it faces in achieving its growth objectives.

3. NewsRoom

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Xcel Brands, Inc. (XELB) Q3 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

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XCel Brands (XELB) Reports Q3 Loss, Misses Revenue Estimates

Nov -20

Source: zacks.com

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Xcel Brands to Host Third Quarter 2025 Earnings Call on November 19, 2025

Nov -14

Source: globenewswire.com

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Xcel Brands Appoints Olin Lancaster as Chief Revenue Officer

Sep -19

Source: globenewswire.com

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Xcel Brands, Inc. (XELB) Q2 2025 Earnings Call Transcript

Aug -19

Source: seekingalpha.com

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XCel Brands (XELB) Reports Q2 Loss, Misses Revenue Estimates

Aug -14

Source: zacks.com

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Xcel Brands, Inc. Announces Second Quarter 2025 Financial Results

Aug -14

Source: globenewswire.com

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Xcel Brands to Host Second Quarter 2025 Earnings Call on August 14, 2025

Aug -12

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.85%)

6. Segments

Licensing

Expected Growth: 10.2%

Growing demand for licensed brands, increasing popularity of e-commerce, and expansion into new product categories drive Xcel Brands' growth. The company's strong brand portfolio, including Isaac Mizrahi and Judith Ripka, positions it for continued success.

Branded Jewelry and Apparel

Expected Growth: 5.5%

Growing demand for fashion-forward products, increasing popularity of licensed brands, and expansion into new markets drive growth in the branded jewelry and apparel segment.

7. Detailed Products

Catherine Malandrino

Luxury women's apparel and accessories

Isaac Mizrahi

Fashion apparel and accessories for men and women

Judith Ripka

Luxury jewelry and accessories

H by Halston

Fashion apparel and accessories for women

C Wonder

Fashion apparel and accessories for women

Longaberger

Home and kitchen products

Hickey Freeman

Luxury menswear

8. Xcel Brands, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Xcel Brands, Inc. operates in the apparel industry, where substitutes are readily available. However, the company's strong brand portfolio and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Xcel Brands, Inc. has a diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and wide distribution network reduce the dependence on any single customer.

Bargaining Power Of Suppliers

Xcel Brands, Inc. relies on a network of suppliers for raw materials and manufacturing services. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The apparel industry has high barriers to entry, including significant capital requirements, complex supply chains, and established brand recognition. These barriers make it difficult for new entrants to compete with Xcel Brands, Inc.

Intensity Of Rivalry

The apparel industry is highly competitive, with many established players competing for market share. Xcel Brands, Inc. faces intense competition from other apparel companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.67%
Debt Cost 3.95%
Equity Weight 89.33%
Equity Cost 11.28%
WACC 10.49%
Leverage 11.95%

11. Quality Control: Xcel Brands, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vince

A-Score: 4.3/10

Value: 9.6

Growth: 2.7

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
FIGS

A-Score: 4.1/10

Value: 1.7

Growth: 8.8

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Delta Apparel

A-Score: 3.4/10

Value: 10.0

Growth: 1.7

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Ubiquiti

A-Score: 3.0/10

Value: 8.3

Growth: 1.3

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Hanesbrands

A-Score: 3.0/10

Value: 3.5

Growth: 0.9

Quality: 4.5

Yield: 2.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Xcel Brands

A-Score: 2.7/10

Value: 9.2

Growth: 2.4

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.97$

Current Price

0.97$

Potential

-0.00%

Expected Cash-Flows