Business
Xcel Brands, Inc. Announces First Quarter 2023 Results
Company announces completion of its strategic transformation plan to shift its business model from a wholesale/production model to a modern, asset-light and
About this update from Xcel Brands, Inc
[{"type":"text","content":"Company announces completion of its strategic transformation plan to shift its business model from a wholesale/production model to a modern, asset-light and highly profitable media and consumer products business model, resulting in approximately $13 million in annual cost savings.Company announces major new Halston licensing agreement, which will provide upfront cash payment in the second quarter 2023, and future guaranteed minimum royalties and significant minimum net sale requirements.Revenues for the quarter ended March 31, 2023, were $6.1 million, up from $4.1 million in the immediately-preceding quarter ended December 31, 2022. NEW YORK, May 18, 2023 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company with over $4 billion in retail sales generated by its brands through livestreaming alone and over 10,000 hours of show programming time, today announced its financial results for the first quarter ended March 31, 2023. The Company also provided updates on its strategic transformation efforts to date. Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented, “During the first quarter of 2023 and subsequent months, we have made significant progress toward our efforts to transform the Company into a modern, working capital asset-light, and highly profitable media and consumer products business. In addition to the new licensing agreements that were announced in April, we recently signed a new master licensing agreement for the Halston Brand, which provides us with both immediate additional liquidity today and a tremendous opportunity to grow the brand in the future. At the same time, we have already started to realize benefits from cost savings, and expect those to be fully realized by the third quarter of this year, resulting in total savings of $13 million on an annualized basis. Based on our progress to date, we expect to achieve positive monthly EBITDA by the end of 2023 and beyond.” Strategic Transformation In the first quarter of 2023, Xcel began to restructure its business operations by entering into new licensing agreements with best-in-class business partners. The Company entered into a new interactive television licensing agreement with America’s Collectibles Network, Inc. d/b/a JTV (“JTV”) for the Ripka Brand, and a separate license with ...