Wed, May 28, 10:02 AM (46 days ago)
Xcel Brands, Inc. (XELB) reported a net loss of $22.4 million for 2024, compared to a net loss of $21.1 million in 2023. The company's revenue decreased by $9.5 million to $8.3 million, primarily due to the exit from wholesale apparel and fine jewelry sales operations and outsourcing of the Longaberger business. Net licensing revenue decreased by $1.25 million, partially offset by new licensing agreements. The company's gross profit margin from net product sales decreased to approximately negative 28% due to the sale of remaining inventory at cost and charge-backs. Direct operating costs and expenses decreased by $10.41 million, reflecting cost savings from restructuring and divestitures. The company's financial condition remains challenging, with significant debt obligations and a history of recurring losses. Xcel Brands continues to face risks related to market acceptance, competition, and economic conditions. The company's strategic overview includes growing its brands through licensing, live streaming, and social commerce, as well as acquiring new brands. Future outlook is uncertain due to ongoing financial challenges and market risks.