Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q2 Results. The company reported Q2 revenue of $1.3 million and an adj. EBITDA loss of $0.3 million, as illustrated in Figure #1 Q2 results. Importantly, while revenue was 22.3% lower than our estimate of $1.7 million, the adj. EBITDA loss of $0.3 million was largely in line with our expectations of a loss of $0.35 million. Furthermore, the on target adj. EBITDA figure was driven by the company’s strategic cost reduction and business transformation efforts, as well as the Lori Goldstein divestiture.
Favorable outlook. While the company is approaching the back half of the year with caution, largely driven by potential tariff impacts, we believe it stands to benefit from a number of favorable developments. Notably, the company is launching its Longaberger brand in Q3 on QVC and announced an accelerated timeline for its new influencer brands. Additionally, the company stands to benefit from its Halston brand as royalties kick in.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
500 5th Avenue 20th Floor New York, NY 10110 United States Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 599 Key Executives Name Title Pay Exercised Year Born Mr. Jonathan CEO & Director 825.62k N/A 1958 Ms. Marie Fogel Senior VP and Chief Merchandising & Manufacturing Officer 633.19k N/A 1961 Mr. John Chief Financial Officer
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid Q1 results. the company reported Q1 revenue of $57.9 million and an adj. EBITDA loss of $3.0 million, both of which were better than our estimates of $56.0 million and a loss of $5.5 million, respectively. Notably, while revenue and adj. EBITDA are both modestly lower than the prior year period; we view the Q1 results favorably, given the company’s ability to manage the uncertain tariff outlook.
Tariff mitigation. The company highlighted that it has been taking steps to reduce its exposure to China, currently roughly 60% of its cost of goods sold. Notably, the company is sourcing from other countries and expects that China will be roughly 25% of its cost of goods by the end of 2025. The company has leadership located in the sourcing countries to ensure product quality.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 results. First quarter results indicated a modest improvement from Q4, but it was a slow start to the year. First quarter revenues were $1.3 million, and the company reported an adj. EBITDA loss of $0.7 million from continuing operations. We believe the company is well positioned to benefit from a number of favorable developments, including the launch of new brands, contributions from Halston, and a lower cost base.
Strategic partnerships. Notably, the company announced a series of new strategic partnerships this year with Jenny Martinez, Gemma Stafford, and Cesar Millan. These new strategic partnerships expand the company’s product offerings into pet products, bakeware, kitchenware, and home essentials. Furthermore, the new celebrity partnerships bring a large number of social media followers, which supports the company’s effort to reach 100 million social media followers in 2026.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 Results. First quarter results indicated a modest improvement from Q4, but it was a slow start to the year. First quarter revenues were $1.3 million, and the company reported an adj. EBITDA loss of $0.7 million from continuing operations. We believe the company is well positioned to benefit from a number of favorable developments, including the launch of new brands, contributions from Halston, and a lower cost base.
Positive outlook. The company indicated that it plans to be adj. EBITDA $1 million to $2.5 million positive for full year 2025 in spite of the potential impact of trade policies and disruption from headquarter consolidation at HSN and QVC. The outlook is supported by significant cost reductions that are expected to be at a run rate of $2.5 million per quarter and building royalty revenue from GIII and its Halston brand. Most of the trade policy uncertainty is focused on the second half of the year.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Xcel Brands (NASDAQ: XELB), an industry leading media and consumer products company specializing in building influencer-driven brands through live streaming and social commerce, is thrilled to announce a strategic partnership and a $9 Million strategic investment from United Trademark Group (UTG), a global leader in brand development and licensing.
UTG specializes in mergers, acquisitions, brand strategy, and digital innovation; partnering with top-tier companies worldwide to maximize brand value and unlock new growth opportunities. They empower brands and merchants by providing the infrastructure and operational expertise—across design, manufacturing, distribution, and retail.
UTG believes in elevating brands beyond products, crafting immersive experiences that resonate with consumers. Leveraging emerging media, social platforms, and cutting-edge retail technology, UTG continuously redefines how brands connect with audiences. Whether through DTC, interactive campaigns, influencer collaborations, or experiential retail, they create dynamic, consumer-driven brand experiences.
“We are excited to work with Xcel Brands,” said Alex Wang, Co-Founder and Chairman of UTG. “By combining their expertise in social commerce and our shared vision and commitment to product and innovation, we look forward to building the next generation of great brands.”
“We are very excited to partner with UTG,” stated Robert W. D’Loren, Chairman and Chief Executive Officer of Xcel Brands. “There is tremendous synergy between our companies’ goals, missions, and visions for the future of the global consumer sector. With UTG’s global expertise and our shared commitment to innovation, brand building and leveraging pioneering new technologies, we see great opportunities on the horizon and look forward to unlocking new possibilities together.”
This collaboration reinforces Xcel’s commitment to transforming how consumers engage with the brands they love. Both UTG and Xcel Brands are rooted in a social-first, creator-driven approach—leveraging the power of digital communities, cultural relevance, and influencer partnerships to build brands that truly resonate with today’s consumer. Visit www.xcelbrands.com for more information.
Consensus, an investment bank focused on the consumer products sector (www.Consensusadvisors.com), advised UTG on this transaction.
About Xcel Brands Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the Tower Hill by Christie Brinkley co-branded collaboration, and holds noncontrolling interests in the Isaac Mizrahi brand and Orme Live. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel has recently announced the launch of new pet brand, Trust-Respect-Love by Cesar Millan and bakeware and cooking brand with Gemma Stafford. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retail, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $5 billion in retail sales via livestreaming in interactive television and digital channels alone, growing social media presence of approximately 40 million followers across their brand profile and talent, and over 20,000 hours of livestream content production time and social commerce. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. www.xcelbrands.com
About UTG United Trademark Group (UTG) is a global leader in consumer brands, headquartered in Shanghai, China, with offices in Toronto, Paris, and Milan. Leveraging world-class product development, expert supply chain capabilities, and an unrivaled retail distribution network in China, UTG has transformed multiple brands into household names across the region.
Currently managing a diverse portfolio of over 10 brands, UTG generates more than $1.5 billion in annual retail sales across 12 countries. Our offerings span a wide range of industries, including lifestyle apparel, footwear, accessories, and more. Through a mix of owned and licensed brands, we develop innovative lifestyle and fashion products that resonate with consumers around the world.
UTG is committed to building brands that go beyond products, creating lifestyles that connect people to the activities and experiences they love.
NEW YORK, March 24, 2025 (GLOBE NEWSWIRE) — Xcel Brands (NASDAQ: XELB), an industry leading media and consumer products company specializing in building influencer-driven brands through social commerce and livestreaming, is partnering with renowned dog behaviorist, New York Times best-selling author, and global television star Cesar Millan to launch an innovative pet brand, “Trust-Respect-Love by Cesar Millan,” that will redefine the pet industry. Spanning multiple pet categories, this new brand will introduce a collection of high-quality, purpose-driven products designed and developed in collaboration with Cesar Millan to enhance the bond between pets and their owners through trust, respect, and love.
Cesar Millan brings over two decades of experience to this exciting new venture. The brand will feature premium pet essentials, including toys, training tools, and accessories. Every product reflects Cesar’s core values of trust, respect, and love—offering solutions that are both functional and deeply aligned with the principles of balanced relationships between dogs and humans.
By combining Cesar’s expertise in canine psychology with Xcel Brands’ proven success in brand building, licensing, content creation, and social commerce, Xcel Brands is creating a transformative pet brand that delivers innovation, quality, and education to pet owners worldwide.
“We are thrilled to partner with Cesar Millan to launch this brand. His unparalleled expertise, deep connection with pet owners, and global influence align perfectly with Xcel’s vision of creating innovative, lifestyle-driven consumer brands,” stated Robert W. D’Loren, Chairman and Chief Executive Officer of Xcel Brands. “This collaboration brings us one step closer to our goal of reaching over 100 million social followers across our brand portfolio, reinforcing our commitment to transforming how consumers engage with the brands they love.”
With over 21 million loyal followers across social media and a presence in more than 120+ countries through his hit TV series, Cesar Millan is uniquely positioned to lead the next wave of pet care innovation. With Cesar’s heritage and global influence, the brand will uniquely resonate with both English and Spanish-speaking markets, fostering inclusivity and connection.
“I am looking forward to this collaboration with Xcel and can’t wait to share “Trust-Respect-Love by Cesar Millan” with dog lovers everywhere; to offer our philosophy and guidance to them, and lead humans and their pets into the beautiful discovery of balance and nurture,” expressed Millan.
The new brand, “Trust-Respect-Love by Cesar Millan,” will also serve as an educational platform, combining top-tier products with expert guidance helping pet owners nurture balanced, happy pets. With the expanding pet industry, this partnership is strategically positioned to set new trends and create an engaging community of pet owners. As part of its anticipated debut, Xcel will be showcasing the brand at Global Pet Expo, the pet industry’s premier event on March 26 – 28, 2025. The brand is set to launch in Spring 2026, with availability through select retailers, e-commerce platforms, and live-stream shopping. Stay updated on this exciting journey at www.xcelbrands.com.
About Xcel Brands Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the Tower Hill by Christie Brinkley co-branded collaboration, and holds noncontrolling interests in the Isaac Mizrahi brand and Orme Live. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel has recently announced the launch of new pet brand, Trust-Respect-Love by Cesar Millan. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retail, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $5 billion in retail sales via livestreaming in interactive television and digital channels alone, growing social media presence of 27+ million followers across their brand profile and talent, and over 20,000 hours of livestream content production time and social commerce. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. www.xcelbrands.com
About Cesar Millan Cesar Millan is a world-renowned dog behaviorist with over 25 years of experience transforming relationships between humans and their dogs. From his original hit TV series, the Dog Whisperer, to his most recent TV series Better Human, Better Dog, to his best-selling books and iconic workshops, Cesar has become a trusted guide for millions of dog lovers worldwide. With a social media following of over 21 million people and a legacy that spans two decades on U.S. television, Cesar’s influence extends far and wide. Trusted by celebrities, world leaders, and first-time pet owners alike, Cesar is committed to helping you achieve lasting harmony with your dog. Cesar moves forward in his journey with purpose and you can follow this journey at www.cesarmillan.com.
PDF Version 1-for-10 reverse stock split to become effective as of the opening of trading on March 25, 2025
NEW YORK, March 21, 2025 (GLOBE NEWSWIRE) — Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel Brands” or the “Company”), a media and consumer products company with significant expertise in livestream shopping and social commerce, today announced that it will effect a 1-for-10 reverse stock split (the “Reverse Stock Split”) of its issued and outstanding common stock par value $0.001 per share (the “Common Stock”), effective with the opening of trading on March 25, 2025.
Xcel Brands’ Common Stock will continue to trade on the Nasdaq Capital Market (“Nasdaq”) under the symbol “XELB”. The new CUSIP number for the Common Stock following the Reverse Stock Split will be 98400M200.
The material effects of the Reverse Stock Split are for every ten shares (the “Reverse Stock Split Number”) of Xcel Brands’ issued and outstanding Common Stock have been combined into one (1) share of Common Stock. The ownership percentage of each Xcel Brands stockholder will remain unchanged, other than as a result of fractional shares. No fractional shares of Common Stock will be issued in connection with the Reverse Stock Split. Instead, stockholders who otherwise would have been entitled to receive fractional shares were entitled to receive a cash payment (without interest and subject to applicable withholding taxes) in lieu of such fractional shares equal to the fraction of a share of common stock to which such stockholder would otherwise be entitled multiplied by (i) the closing price per share of the common stock on the Nasdaq Capital Market at the close of business on the trading day preceding the date of the Certificate of Amendment, multiplied by (ii) the Reverse Stock Split Number.
The shares of Common Stock underlying the Company’s outstanding stock options and warrants will be proportionately adjusted along with corresponding adjustments to their exercise prices.
At the special meeting of stockholders held on March 12, 2025, the stockholders of the Company approved a proposal to authorize the Company’s Board of Directors (the “Board”) to file a Certificate of Amendment to effect the Reverse Stock Split at a ratio between 1-for-2 and 1-for-10, as determined by the Chairman of the Board in his sole discretion.
The combination of, and reduction in, the number of issued shares of Common Stock as a result of the Reverse Stock Split will occur automatically on March 25, 2025, without any additional action on the part of Xcel Brands’ stockholders. The Company’s transfer agent, Continental Stock Transfer & Trust Company, is the exchange agent for the Reverse Stock Split and will correspond with stockholders of record regarding the Reverse Stock Split. Stockholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split.
Among other considerations, the Reverse Stock Split is intended to assist in bringing Xcel Brands into compliance with the $1.00 minimum bid price requirement for maintaining the listing of its Common Stock on the Nasdaq Capital Market.
Additional information regarding the Reverse Stock Split can be found in the Company’s Definitive Proxy Statement on Schedule 14A, filed with the U.S. Securities and Exchange Commission on February 14, 2025. A link to this document is available at https://www.sec.gov and on Xcel Brands’ website at https://www.xcelbrands.com/pages/sec-filings.
For more information about Xcel Brands, visit www.xcelbrands.com. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston, Judith Ripka, and C. Wonder brands, as well as the Tower Hill by Christie Brinkley co-branded collaboration, and holds noncontrolling interests in the Isaac Mizrahi brand and Orme Live. Xcel also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel is pioneering a true modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retail, and e-commerce channels to be everywhere its customers shop. The company’s brands have generated in excess of $5 billion in retail sales via livestreaming in interactive television and digital channels alone, and over 20,000 hours of live-stream and social commerce. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies.
Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “ongoing,” “could,” “estimates,” “expects,” “intends,” “may,” “appears,” “suggests,” “future,” “likely,” “goal,” “plans,” “potential,” “projects,” “predicts,” “seeks,” “should,” “would,” “guidance,” “confident” or “will” or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on form 10-K for the year ended December 31, 2021 and its other filings with the SEC, which may cause our or our industry’s actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fiscal Q2 Results. The company reported fiscal Q2 revenue and adj. EBITDA of $775.5 million and $116.3 million, both of which were lower than our estimates of $801.1 million and $124.7 million, respectively. Notably, an order management system (OMS) that was implemented in Q2 for Harry & David faced issues with complicated orders during periods of high volume. The OMS issue, which was resolved in the quarter, resulted in roughly $20 million of lost revenue and is largely to blame for the downside variance.
Strategic initiatives. Importantly, the company remains focused on reducing costs through increased automation, increasing investments in sales and marketing, and broadening its product offerings for its price-sensitive customers. Notably, management highlighted that the savings from its cost reduction efforts will largely fund its increased investment in sales and marketing in an effort to broaden its customer base.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Brendan Hoffman Expected to Become CEO of Vince Holding Corp.
NEW YORK–(BUSINESS WIRE)– Vince Holding Corp., (NYSE: VNCE) (“VNCE” or the “Company”), a global contemporary retailer, today announced that P180, a new venture focused on accelerating growth and profitability in the luxury apparel sector, acquired a majority stake in VNCE (the “P180 Acquisition”) from affiliates of Sun Capital Partners, Inc. (collectively, “Sun Capital”).
In conjunction with the P180 Acquisition, Brendan Hoffman is expected to assume the role of Chief Executive Officer of VNCE effective on or around February 3, 2025, subject to finalization of his employment terms. With this transition, David Stefko is expected to step down as Interim CEO of VNCE and continue to serve on the VNCE Board of Directors. In addition, Matthew Garff resigned from the VNCE Board of Directors in connection with the P180 Acquisition.
“VNCE is the perfect partner for P180; the brand’s dominance in the luxury contemporary market aligns seamlessly with our acquisition strategy. In addition, as VNCE has evolved its operating model, we believe having access to the technology and team of CaaStle, founded by Christine Hunsicker, my co-founder at P180, will further advance the company’s momentum in driving improved profitability while enhancing its omni-channel experience.” Mr. Hoffman added, “Personally, I have a strong connection to the Vince brand, having served as VNCE CEO for five years. I am excited to lead the team again as we continue to unlock new growth opportunities, drive innovation, enhance the brand’s market position, and focus on monetizing the Company’s inventory to ensure continued long-term success.”
“P180’s acquisition represents a transformative opportunity for VNCE. With this transaction, we will gain the operational expertise and cutting-edge digital capabilities needed to drive the brand’s future success,” commented Michael Mardy, Chairman of VNCE. “On behalf of the Board and the organization, I would also like to thank Dave for stepping into the interim CEO role for the past year. Through his leadership, the company has continued to execute and deliver results by operating a healthier full price model. We are glad to have Dave remain on the Board and are excited to welcome Brendan back to lead the organization into its next chapter.”
This acquisition marks the third strategic deal for P180 since its inception in 2024 and follows its recent investment with the prestigious fashion label Altuzarra and digital partnership with the multi-brand premium retailer elysewalker.
VNCE Significantly Reduces Debt
Simultaneously with the P180 Acquisition, an indirectly wholly owned subsidiary of VNCE, V Opco, LLC (“V Opco”), amended its existing credit agreement (the “ABL Credit Facility”) with Bank of America, N.A. (“BofA”). The amendment consents to, among other things, the change in control in connection with the P180 Acquisition, as well as a partial pay down of the subordinated debt (“Sun Debt Facility”) with SK Financial Services, LLC, an affiliate of Sun Capital, through increased borrowings under the ABL Credit Facility. On the same day, V Opco paid $15 million to SK Financial Services, LLC using proceeds from the ABL Credit Facility, which resulted in a pay-down of $20 million under the Sun Debt Facility (the “Sun Debt Paydown”).
In addition, P-180 acquired and assumed $7 million of the loans (the “P-180 Assumed Loan”) outstanding pursuant to the Sun Debt Facility and immediately thereafter cancelled such $7 million (the “P-180 Debt Forgiveness”).
Following the Sun Debt Paydown and P-180 Debt Forgiveness, the outstanding principal amount of subordinated loans is reduced by approximately $27 million with $7.5 million remaining outstanding under the Sun Debt Facility, which will continue to accrue payment-in-kind interest in accordance with, and otherwise be subject to, the terms and conditions therein.
Immediately following the P-180 Acquisition, P180 beneficially owned approximately 65% of all outstanding shares of common stock of VNCE and affiliates of Sun Capital continue to beneficially own approximately 2% of the Company’s outstanding common stock.
As part of the terms to the transactions described above, P-180 agreed to reimburse the Company for certain fees and expenses incurred in connection with such transactions, including the Company’s legal fees as well as the consent fee to BofA.
About P180:
P180, a new venture co-founded by Christine Hunsicker (founder and CEO of CaaStle, Inc.) and Brendan Hoffman, is dedicated to driving brand and retailer profitability by providing operational expertise and access to leading industry resources, including CaaStle’s innovative monetization platform. P180’s core mission is to invest in or acquire brands and retailers that stand to benefit from digital expertise and inventory monetization.
About VNCE:
Vince Holding Corp. is a global retail company that operates the Vince brand women’s and men’s ready to wear business. Vince, established in 2002, is a leading global luxury apparel and accessories brand best known for creating elevated yet understated pieces for every day effortless style. Vince Holding Corp. operates 47 full-price retail stores, 14 outlet stores, and its e-commerce site, vince.com and through its subscription service Vince Unfold, www.vinceunfold.com, operated by CaaStle, as well as through premium wholesale channels globally. Please visit www.vince.com for more information.
Forward-Looking Statements: This document contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our planned transformation program and our current expectations about possible or assumed future results of operations of the Company and are indicated by words or phrases such as “may,” “will,” “should,” “believe,” “expect,” “seek,” “anticipate,” “intend,” “estimate,” “plan,” “target,” “project,” “forecast,” “envision” and other similar phrases. Although we believe the assumptions and expectations reflected in these forward-looking statements are reasonable, these assumptions and expectations may not prove to be correct and we may not achieve the results or benefits anticipated. These forward-looking statements are not guarantees of actual results, and our actual results may differ materially from those suggested in the forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, including, without limitation: our ability to successfully manage the transition of VNCE majority ownership to P180 and to execute P180’s strategies for the Company; our ability to execute and realize the enhanced profitability expectations of our planned transformation program; our ability to maintain the license agreement with ABG Vince, a subsidiary of Authentic Brands Group; ABG Vince’s expansion of the Vince brand into other categories and territories; ABG Vince’s approval rights and other actions; our ability to maintain adequate cash flow from operations or availability under our revolving credit facility to meet our liquidity needs; our ability to realize the benefits of our strategic initiatives; general economic conditions; further impairment of our goodwill; the execution and management of our direct-to-consumer business growth plans; our ability to make lease payments when due; our ability to maintain our larger wholesale partners; our ability to remediate the identified material weakness in our internal control over financial reporting; our ability to comply with domestic and international laws, regulations and orders; our ability to anticipate and/or react to changes in customer demand and attract new customers, including in connection with making inventory commitments; our ability to remain competitive in the areas of merchandise quality, price, breadth of selection and customer service; our ability to attract and retain key personnel; seasonal and quarterly variations in our revenue and income; our ability to mitigate system security risk issues, such as cyber or malware attacks, as well as other major system failures; our ability to optimize our systems, processes and functions; our ability to comply with privacy-related obligations; our ability to ensure the proper operation of the distribution facilities by third-party logistics providers; fluctuations in the price, availability and quality of raw materials; commodity, raw material and other cost increases; the extent of our foreign sourcing; our reliance on independent manufacturers; other tax matters; and other factors as set forth from time to time in our Securities and Exchange Commission filings, including those described under “Item 1A—Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We intend these forward-looking statements to speak only as of the time of this release and do not undertake to update or revise them as more information becomes available, except as required by law.
Key Points: – U.S. holiday spending in 2024 is projected to reach nearly $1 trillion, driven by wage growth and consumer demand. – Over one-third of Americans incurred debt this holiday season, with an average balance of $1,181. – Credit card interest rates remain above 20%, making it crucial to pay off balances quickly to avoid long-term financial strain.
As the holiday season winds down, American consumers are grappling with the financial aftermath of record-breaking spending. Fueled by strong consumer demand and elevated prices, holiday expenditures are set to reach historic levels. However, this surge in spending has coincided with a sharp rise in credit card debt, painting a mixed picture of financial resilience and vulnerability.
According to the National Retail Federation (NRF), U.S. holiday spending for the 2024 season is projected to hit between $979.5 billion and $989 billion. These numbers reflect robust consumer activity from November 1 through December 31, buoyed by wage growth, modest inflation, and healthy household balance sheets.
Jack Kleinhenz, the NRF’s chief economist, commented that these factors have “led to solid holiday spending.” Despite economic uncertainties, consumers have shown remarkable willingness to shop for gifts, experiences, and celebrations.
This holiday season, however, many Americans have leaned heavily on credit cards to fund their purchases. A LendingTree survey revealed that 36% of shoppers took on debt during the season, with the average amount owed climbing to $1,181, up from $1,028 last year.
Matt Schulz, chief credit analyst at LendingTree, pointed to inflation as a key driver behind this trend, saying, “Prices are still really high, and that means lots of Americans simply didn’t have any choice.” For many, the combination of rising costs and the desire to maintain holiday traditions has outweighed concerns about accumulating debt.
Even before the holiday shopping frenzy, credit card debt in the U.S. was at an all-time high. Data from the Federal Reserve Bank of New York shows that balances were 8.1% higher year-over-year heading into the season. Compounding this issue, a NerdWallet report found that 28% of consumers had not fully paid off the credit card debt incurred during last year’s holiday season.
While some see increased spending as a sign of consumer confidence, the costs associated with credit card borrowing remain a significant concern. Interest rates on credit cards now average more than 20%, with some retail card rates climbing even higher.
For those unable to pay off their balances quickly, the financial repercussions can be steep. LendingTree’s survey indicated that 21% of those with holiday debt expect it to take five months or longer to pay off. This extended timeline can lead to ballooning interest charges, diminishing consumers’ ability to save or meet other financial goals.
Schulz warns, “High-interest debt means less money to put towards building an emergency fund, saving for college, or even covering basic expenses. In extreme cases, it can lead to financial insecurity.”
As the new year approaches, financial experts urge consumers to prioritize paying down holiday debt as quickly as possible. Strategies such as creating a repayment plan, consolidating debt, or transferring balances to a lower-interest option can help mitigate the impact of high interest rates.
While the 2024 holiday season may have been a record-setter in terms of spending, its legacy will likely serve as a cautionary tale about the dangers of relying too heavily on credit in an era of rising costs.
Xcel Brands, Inc. 1333 Broadway 10th Floor New York, NY 10018 United States https:/Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 84 Key Executives Name Title Pay Exercised Year Born Mr. Robert W. D’Loren Chairman, Pres & CEO 1.27M N/A 1958 Mr. James F. Haran CFO, Principal Financial & Accou
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 Results. The company reported Q3 revenue and adj. EBITDA of $1.9 million and a loss of $1.0 million, respectively, both of which were largely in line with our forecast, as illustrated in Figure #1 Q3 Results. Notably, the quarter was impacted by Hurricanes, which led to canceled shows and delayed sales, resulting in roughly $500,000 of lost revenue. Importantly, we believe the company’s long term growth outlook remains favorable.
Looking past the Noise. In Q3, the company recorded a non-cash charge of $6.3 million, which is related to its equity interest in Isaac Mizrahi. The write-down anticipates that the company may not meet the minimum royalty threshold in 2025, which would result in a decrease in its ownership interest in Isaac Mizrahi from 30% to 17.5%.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Key Points: – Nordstrom will go private in a $6.25 billion deal, with shareholders receiving $24.25 per share in cash. – The Nordstrom family will hold a 50.1% stake, with Mexican retailer Liverpool owning 49.9%. – The privatization aims to revitalize Nordstrom’s operations away from public market pressures.
Nordstrom Inc., the iconic department store chain, is set to go private in a landmark $6.25 billion deal spearheaded by its founding family. This strategic move is designed to provide the company with greater flexibility away from the pressures of the public market, enabling it to address evolving retail challenges more effectively.
Under the terms of the agreement, Nordstrom shareholders will receive $24.25 per share in cash, reflecting a significant valuation for the company. The transaction, expected to close in the first half of 2025, will leave the Nordstrom family with a controlling 50.1% stake, while their partner, Mexican retailer El Puerto de Liverpool SAB, will hold the remaining 49.9%.
Nordstrom’s stock has seen a 33% increase this year, bolstered by optimism surrounding the retail sector’s recovery and this transformative move. However, the offer represents a notable decline from a 2018 bid by the family to take the company private at $50 per share, which the board deemed too low at the time.
This privatization signals the Nordstrom family’s confidence in reviving the brand’s fortunes amidst a shifting retail landscape. CEO Erik Nordstrom expressed optimism about the deal, stating, “On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future.”
Nordstrom, like many department stores, has struggled to regain its pre-pandemic revenue levels. After peaking at $15.9 billion in annual revenue in fiscal 2019, the company’s sales have not returned to those heights. Analysts project fiscal 2024 revenue to close at $14.9 billion, reflecting a lingering decline exacerbated by changing consumer habits and the rise of online competitors such as Amazon.
The challenges faced by Nordstrom echo broader trends in the U.S. department store sector. Macy’s Inc. has downsized its store footprint to reduce costs, while Saks Fifth Avenue and Neiman Marcus have undergone significant ownership changes to adapt to market dynamics.
The transaction will be funded through a mix of rollover equity contributions from the Nordstrom family and Liverpool, $450 million in borrowings from a $1.2 billion ABL bank facility, and company cash reserves. A special dividend of up to $0.25 per share is planned for shareholders, contingent on the deal’s completion.
The Nordstrom board, excluding Erik and Peter Nordstrom, who recused themselves from the vote, unanimously approved the transaction. The deal still requires approval from two-thirds of the company’s common stockholders, including a majority of shares not owned by the Nordstrom family or Liverpool.
Taking Nordstrom private marks a pivotal moment for the 123-year-old retailer, granting it the freedom to restructure and innovate away from Wall Street’s scrutiny. The Nordstrom family’s continued involvement and partnership with Liverpool signal a commitment to ensuring the company adapts to the evolving retail landscape.
The success of this move could serve as a case study for other legacy retailers grappling with similar challenges, as Nordstrom seeks to reclaim its position as a leader in the retail industry.
Key Points: – Goods trade deficit rose by 14.9% to $108.2 billion, the highest in over two years. – Goods imports increased by 3.8%, reflecting a rise in consumer and capital goods. – Inventory growth in retail, especially for motor vehicles, is likely to cushion GDP impact.
The U.S. goods trade deficit soared in September to its highest level since March 2022, reaching $108.2 billion. This rise, primarily driven by a 3.8% jump in imports, underscores strong consumer demand but has led some economists to scale back their growth projections for the third quarter. Released by the Commerce Department, the deficit reflects the challenges of balancing robust domestic consumption with slowing exports, which declined by 2%.
Economists noted that while a larger trade deficit traditionally weighs down gross domestic product (GDP), this impact may be mitigated by increased retail inventories, particularly in motor vehicles. Consumer spending remains strong, anticipated to be a major driver of growth for the third quarter. Yet, the trade data has led analysts to revise their economic forecasts downward, with some now expecting annualized GDP growth to hit 2.7% rather than the initially forecasted 3.2%.
Imports of consumer goods led the surge, climbing by 5.8%, while food imports saw a 4.6% boost. The demand for capital goods also rose, with businesses stocking up on equipment and industrial supplies, including petroleum and automotive parts. Analysts suggest that businesses were also building up inventories in anticipation of potential supply disruptions, such as the recently resolved dockworkers strike.
Although the high import figures signal economic strength, the dip in exports of consumer goods, industrial supplies, and capital goods points to potential headwinds for U.S. trade competitiveness. The export decline in consumer goods, down by 6.3%, indicates that external demand may be softening, potentially challenging U.S. exporters.
Meanwhile, both wholesale and retail inventories saw shifts in September. Wholesale inventories slipped slightly by 0.1%, while retail inventories rose 0.8%, reflecting sustained consumer demand. Motor vehicle and parts inventories surged by 2.1%, while non-automotive retail inventories grew modestly. Rising inventories support GDP growth, though they also suggest that retailers may have overestimated sales for the period.
Economists are closely watching inventory levels as they provide insight into whether consumer demand can match the increased supply. According to Carl Weinberg, chief economist at High Frequency Economics, an unexpected rise in retail inventories could signal a slowdown in consumer demand but could still provide short-term GDP support.
The recent trade data arrives ahead of Wednesday’s anticipated GDP report, which is expected to provide a clearer picture of the U.S. economy’s trajectory. While strong consumer demand is evident, analysts remain cautious, noting that the elevated goods trade deficit may continue to be a drag on economic growth in the near term.
