Xcel Brands, Inc. (XELB - Free Report) reported fourth-quarter 2019 results, wherein earnings fell on a year over year basis, while revenues rose. Results gained from increased investments in wholesale and e-commerce platforms.
Management refrained from providing any guidance, given the uncertain COVID-19 impacts. The company anticipates adverse impacts from the pandemic during the first and second quarters of 2020. Further, the company remains poised on cost-cutting initiatives, such as a salary-cut for board members, employee furloughs, lowering all non-essential costs and efforts to preserve cash. Also, increased focus on QVC and 20-20 through new product launches bodes well.
Q4 Numbers
Xcel posted adjusted earnings of 5 cents per share, down 28.6% from 7 cents in the year-ago quarter.
This New York-based company’s revenues advanced 14% year over year to $11.4 million in the quarter under review. This uptick can be attributable to a sturdy performance in wholesale apparel and jewelry wholesale along with robust e-commerce sales.
Gross profit declined 3.8% to $7.6 million in fourth-quarter 2019 due to sluggishness in licensing revenues, partly offset by higher wholesale margins. Moreover, gross margin contracted significantly to 67.2%, compared with 79.2% reported in the prior-year quarter.
Additionally, SG&A expenses grew 1.2% to $1.5 million but declined 180 bps to 13.5%, as a percentage of sales.
Adjusted EBITDA was $1.5 million, down 11.8% from the prior-year quarter due to the late launching of Wonder brand in spring 2020 instead of fall 2019, as well as one-time scheduling issues related to the availability of QVC in December.
Xcel Brands, Inc Price, Consensus and EPS Surprise
Financials
Xcel Brands exited the fiscal fourth quarter with cash and cash equivalents of $4.6 million, stockholders' equity of $98.5 million and long-term debt, less current portion, of $17.5 million. As of Dec 31, 2019, cash provided by operating activities was $3.5 million.
Price Performance
In the past three months, this Zacks Rank #3 (Hold) stock has plummeted 53.5% compared with the industry’s 40.3% decline.
Looking for Favorable Stocks? Check These
Best Buy (BBY - Free Report) has an expected long-term earnings growth rate of 7.6% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco Wholesale Corporation (COST - Free Report) , a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 8.4%.
Rite Aid Corporation’s bottomline beat the Zacks Consensus Estimatesignificantly, on average, over the trailing four quarters. Also, the company has a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Xcel Brands, Inc. (XELB - Free Report) reported fourth-quarter 2019 results, wherein earnings fell on a year over year basis, while revenues rose. Results gained from increased investments in wholesale and e-commerce platforms.
Management refrained from providing any guidance, given the uncertain COVID-19 impacts. The company anticipates adverse impacts from the pandemic during the first and second quarters of 2020. Further, the company remains poised on cost-cutting initiatives, such as a salary-cut for board members, employee furloughs, lowering all non-essential costs and efforts to preserve cash. Also, increased focus on QVC and 20-20 through new product launches bodes well.
Q4 Numbers
Xcel posted adjusted earnings of 5 cents per share, down 28.6% from 7 cents in the year-ago quarter.
This New York-based company’s revenues advanced 14% year over year to $11.4 million in the quarter under review. This uptick can be attributable to a sturdy performance in wholesale apparel and jewelry wholesale along with robust e-commerce sales.
Gross profit declined 3.8% to $7.6 million in fourth-quarter 2019 due to sluggishness in licensing revenues, partly offset by higher wholesale margins. Moreover, gross margin contracted significantly to 67.2%, compared with 79.2% reported in the prior-year quarter.
Additionally, SG&A expenses grew 1.2% to $1.5 million but declined 180 bps to 13.5%, as a percentage of sales.
Adjusted EBITDA was $1.5 million, down 11.8% from the prior-year quarter due to the late launching of Wonder brand in spring 2020 instead of fall 2019, as well as one-time scheduling issues related to the availability of QVC in December.
Xcel Brands, Inc Price, Consensus and EPS Surprise
Financials
Xcel Brands exited the fiscal fourth quarter with cash and cash equivalents of $4.6 million, stockholders' equity of $98.5 million and long-term debt, less current portion, of $17.5 million. As of Dec 31, 2019, cash provided by operating activities was $3.5 million.
Price Performance
In the past three months, this Zacks Rank #3 (Hold) stock has plummeted 53.5% compared with the industry’s 40.3% decline.
Looking for Favorable Stocks? Check These
Best Buy (BBY - Free Report) has an expected long-term earnings growth rate of 7.6% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Costco Wholesale Corporation (COST - Free Report) , a Zacks Rank #2 stock, has an expected long-term earnings growth rate of 8.4%.
Rite Aid Corporation’s bottomline beat the Zacks Consensus Estimatesignificantly, on average, over the trailing four quarters. Also, the company has a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BBY - FREE
Get the latest research report on COST - FREE
Get the latest research report on XELB - FREE