Xcel Brands Sales Drop 55 Percent
Xcel Brands (NASDAQ:XELB), a fashion and media brand management company specializing in licensing and live-stream social commerce, released its earnings for the quarter ended June 30, 2025, on August 15, 2025. The most noteworthy news was a steep drop in revenue, which fell to $1.3 million (GAAP), down 55% from a year ago and below the $1.84 million analysts expected. However, the company's non-GAAP net loss per share of $(0.37) was better than forecasts, which called for a deeper loss of $(0.75) per share. The period was defined by the aftermath of a key brand divestiture, strict cost controls, and major growth in digital and social media reach, setting an inflection point for future performance.
Source: Analyst estimates for the quarter provided by FactSet.
Xcel Brands (NASDAQ:XELB) operates a business model centered on acquiring, developing, and licensing fashion and lifestyle brands. It generates most of its revenue by providing design, branding, and marketing services, leaving production and distribution to partners through long-term licensing agreements. The company's focus is on a "licensing plus" strategy, which aims to minimize inventory risk and keep operational costs low by avoiding direct ownership of inventories and manufacturing.
Source Fool.com
