Xcel Brands, Inc · NASDAQ:XELB
Xcel Brands — Investor Presentation (September 2024)
31 slides from Xcel Brands's investor presentation, Sep 9, 2024
Slide 1: Leaders in Video and Social Commerce
LEADERS IN VIDEO AND SOCIAL COMMERCE NASDAQ:XELB (NASDAQ: XELB) 06-30-24
Slide 2: Forward Looking Statements
2 FORWARD LOOKING STATEMENTS Certain statements in this presentation, as well as certain oral statements made by management during the presentation, constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements incl
Slide 3: Xcel Brands Is a Leader in Video and Social Commerce
3 XCEL BRANDS IS A LEADER IN VIDEO AND SOCIAL COMMERCE We own and manage a portfolio of leading consumer brands in fashion and home that are promoted primarily through Live Stream media and Social Commerce. In 2024, we launched ORME in partnership with our technology partner KonnectBio(1). We believ
Slide 4: Xcel Brands by the Numbers
XCEL BRANDS BY THE NUMBERS $500MM+ Annual Retail Sales Generated by our Brands 5.7MM+ Followers on Social Media 20K+ Hours of Live Stream Programming $4BB+ Total Retail Sales Generated through Live Streaming 12+ Years as a Leader in Live Stream and Social Commerce 7 BRANDS In our portfolio(1) (NASDA
Slide 5: Our Brands
OUR BRANDS (NASDAQ: XELB) 5 Note: All brands are fully owned by Xcel Brands Inc, other than (i) Isaac Mizrahi which represents a minority interest retained ownership (ii) Longaberger which represents a 50% ownership position in the business by Xcel, (iii) TowerHill which is 50% owned by Xcel, and 50
Slide 6: Halston
(NASDAQ: XELB) 6 • One of the leading iconic American fashion brands • Master License signed with GIII Apparel Group, an industry-leading public company with annual sales of over $2BB in 2023 • G-III launched Halston in apparel, footwear, and handbags in Fall 2024; significant growth expected based
Slide 7: Christian Siriano
• Announced Christian Siriano as new Creative Director in 2023, and launched new collection on HSN in April 2023 • Very strong launch, winning HSN’s rising star award for 2023 • Estimated growth of over 65% in core categories in 2024, with accessories launching on HSN in Fall 2024 • Expansion of non
Slide 8: Judith Ripka
• Leading fine jewelry brand founded in 1977 with over $2 billion in lifetime retail sales • Master License signed with JTV in 2023 for all channels of distribution in fine jewelry and watches • Judith Ripka launched on JTV in October 2023, with significant growth happening in 2024 • Significant gro
Slide 9: Isaac Mizrahi
• American designer fashion brand launched in 1987, with over 86% brand awareness in the United States • Winner of 4 CFDA awards • New sportswear license signed for distribution outside of QVC and through DTC website • International partners and new categories in discussion • Remains top performing
Slide 10: Longaberger
• Premium social commerce and Live Streaming home products company with over 5,000 nano influencers as stylists and 300,000 customers • Founded in 1971, with total lifetime sales in excess of $2.5 billion • Significant growth potential through digital marketing efforts, stylist recruiting, and expan
Slide 11: TowerHill by Christie Brinkley
• Launched May 2024 as a collaboration between Xcel Brands and Christie Lee Brinkley, an iconic American supermodel with over 1.7 million followers on social media • Christie’s beloved home, Tower Hill, located in Long Island’s stunning East End, reflects her creativity and love of art , architectur
Slide 12: Introducing: LB70 by Lloyd Boston
• Launched Fall 2024 exclusively on HSN, the LB70 collection leverages Mr. Boston’s engaging personality and over 25 years of styling experience to offer a new collection of easy to wear styles to the HSN customer, in unique, warm prints and flattering silhouettes • Mr. Boston began his career at To
Slide 13: Sales at Retail
SALES AT RETAIL Retail Sales include actual retail sales where reported, as well as estimates based on a combination of our net wholesales and reported net wholesales of our licensees, converted to estimated retail sales applying a reasonable mark-up rate. Estimated retail sales of our brands does n
Slide 14: Revenue and Adj. EBITDA
REVENUE AND ADJ. EBITDA (1) Launched wholesale divisions in jewelry and apparel to enhance brands (2) Invested over $5MM in technology and systemsfrom 2020-2022 (3) Sold Isaac Mizrahi in May 2022,resulted in revenue reduction of $16MM and EBITDA reduction of approximately $6.8MM,reduced debt from $2
Slide 15: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS (1) (2) (2) (2)(3) (4) Covid-19 Covid-19 Covid-19 (NASDAQ : XELB) 15 FISCAL YEAR / PERIOD ENDING 2019 2020 2021 2022 2023 2Q 2024 Cash $ 4,641 $ 4,957 $ 4,483 $ 4,608 $ 2,998 $ 924 Current Assets 17,566 16,147 17,179 14,020 7,303 4,764 TOTAL Assets $ 143,191 $ 123,054 $ 125,
Slide 16: Xcel Is Well Positioned for the Future of Shopping
XCEL IS WELL POSITIONED FOR THE FUTURE OF SHOPPING ➢ ➢ ➢ (NASDAQ: XELB) 16
Slide 17: ORME: A Next Generation Video and Social Commerce Marketplace
ORME A NEXT GENERATION VIDEO AND SOCIAL COMMERCE MARKETPLACE
Slide 18: ( )
(NASDAQ: XELB) 18
Slide 19: What Is ORME for Our Shoppers and Influencers?
WHAT IS ORME FOR OUR SHOPPERS AND INFLUENCERS? LEARN from authentic people CREATE fun times EXPLORE PRODUCTS in fashion, beauty, home, pet, and wellness with real and honest reviews
Slide 20: What Is ORME for Our Brands and Retailers?
WHAT IS ORME FOR OUR BRANDS AND RETAILERS? ining the best of INFINITE IS: Combining the best o Soe with low returns on SPEND affiliate, influencer, and A way to digital marketing costs people about Free, simple and brands and fast integration products with allecommerce | I) WiEIslelie}isic CUSTOMERS
Slide 21: An Opportunity with ORME
21 An opportunity with (NASDAQ: XELB) 21
Slide 22: What the Tech Does
‘> the Tech Does Shoppers, Brands and Retailers, create shoppable content Shoppers make purchases, in-app, | via 3-click checkout | Shoppers/influencers share. videos to earn a fee
Slide 23: Content Based User Input and AI Machine Learning
Content based user input and Al machine learning Similar products and content recommendations through machine learning based on user profile, browsing data, and other Al sources Style Chat bot powered by Al, recommends products and looks Content screening filter and editing through Al and machine le
Slide 24: Market & Opportunity
Market & Opportunity commerce market size is projected to be in are up for grabs the U.S. market by 2030. In China, the live streaming market, specifically Short Affiliate & Banner Form Video (SFV) is over marketing , Up from in 2017 Influencer marketing (Social Media) spend by brands was around $16
Slide 25: Market & Opportunity Validation
Market & Opportunity Validation August 2024 XCEL eusorareis) | 25
Slide 26: ORME reconsiders the retail sales model
ORME shopping, entertainment and social media as social commerce ORME reconsiders the retail sales model: Switch from the one to many to many to many retail model ORME leverages customers as influencers XCEL eusores | 26
Slide 27: ORME Solves the Problem
ORME Solves the Problem 0, Affiliate/Banner marketing is outdated ; Conversion 28% Nobody clicks on banners anymore Rates Influencer marketing is growing but discovery and attribution is a major challenge. Video offers high conversion rates, but no end-to- -s end SFV platform exists in the U.S. O51%
Slide 28: ORME is the Solution
ORME is the Solution Imagine a Video and Social Commerce marketplace that XCEL ewsotaxeas) | 28
Slide 29: Download the App
Download the app > Launched July 2024 > 14 premium brands > 25,000 downloads > 7,700 users and growing! The future is here ORM XCEL ewsmaxes) | 29
Slide 30: ( ) 04-30-2024
NASDAQ: XELB (NASDAQ: XELB) 04-30-2024
Slide 31: Exhibit A: Reconciliation of Net Income to Adjusted EBITDA
EXHIBIT A Reconciliation of Net Income to Adjusted EBITDA (NASDAQ : XELB) 31 Xcel Brands, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA (Unaudited) FISCAL YEAR 2017 2018 2019 2020 2021 2022 2023 6 Mos 2024 2024 (Goal)(3) Net Income (loss) ($10,122) $1,088 ($3,445) ($12,936) ($12,184) ($4,0