Media and consumer products company Xcel Brands Q3 revenue misses estimates

Reuters11-20
 Media and consumer products company Xcel Brands Q3 revenue misses estimates

Overview

  • Xcel Brands Q3 revenue fell 42% yr/yr, missing analyst expectations

  • Adjusted loss per share for Q3 beats analyst estimates

Outlook

  • Company anticipates new brand launches will drive revenue growth in Q4 2025 and beyond

  • Company aims to return to profitability and achieve 100 mln social media followers

Result Drivers

  • REVENUE DECLINE - Revenue decreased due to lower net licensing fees and prior inventory sell-offs, impacted by cautious consumer spending

  • COST REDUCTION - Direct operating costs decreased 23% due to restructuring and transformation efforts

  • IMPAIRMENT CHARGE - $5.5 million non-cash impairment charge recognized for Isaac Mizrahi brand

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$1.12 mln

$1.24 mln (2 Analysts)

Q3 Adjusted EPS

Beat

-$0.34

-$0.71 (1 Analyst)

Q3 EPS

-$2.02

Q3 Net Income

-$7.99 mln

Q3 Gross Profit

$1.12 mln

Q3 Operating Income

-$7.44 mln

Q3 Pretax Profit

-$7.96 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • 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 $5.00, about 83.2% above its November 18 closing price of $0.84

Press Release: ID:nGNX2yNMZC

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

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment