Stocks Telegraph

Why Xcel Brands Inc. (XELB) stock turnaround in Tuesday’s after-market?

By ST Staff
Published On June 16, 2021 5:05 AM UTC
Why Xcel Brands Inc. (XELB) stock turnaround in Tuesday’s after-market?

Xcel Brands Inc. (XELB) stock started Tuesday, June 15, 2021, trading by losing 10.82% and close the session at $2.06 per share. in the after-hours XELB stock gained 15.54% and close the day at $2.38 per share. XELB shares have risen 100.00% over the last 12 months, and they have moved down 12.71% in the past week. Over the past three months, the stock has gained 7.85%, while over the past six months, it has jumped 98.08%.

Inauguration on Russell Microcap Index

On June 11, 2021, Xcel Brands, Inc announced to join the Russell Microcap® Index after the 2021 Russell indexes annual reconstitution, effective after the U.S. market opens on June 28, according to a preliminary list of additions posted June 4, 2021.

New appointments

On June 1, 2021, Xcel Brands, Inc appointed Heather Bogen as the President of Wholesale Apparel. Bogen will support Xcel Brands’ successful acquisition of dynamic consumer lifestyle brands through her extensive expertise in the fashion industry.

Recent financial results

OnMay 17, 2021, Xcel Brands, Inc released its financial results for the first quarter ended March 31, 2021.

Q1 2021 financial highlights

  • Total revenue was $7.8 million for Q1 2021, compared to $9.5 million for Q1 2020.
  • Gross profit was $5.9 million in Q1 2021 compared to $7.1 million in Q1 2020.
  • For Q1 2021, net loss attributable to Xcel Brands was approximately $2.5 million, or $0.13 per diluted share compared with a net loss of $0.8 million, or $0.04 per diluted share, for the prior-year quarter.
  • Adjusted EBITDA was approximately $0.9 million for Q1 2021 compared to $0.7 million for the prior year quarter.
  • As of March 31, 2021, the company had cash and cash equivalents of approximately $3.0 million, and working capital, exclusive of the current portion of lease obligations, of approximately $6.5 million. 

FY 2020 financial results

On April 21, 2021, Xcel Brands, Inc released its financial results for the fourth quarter ended December 31, 2020.

FY 2020 financial highlights

  • For FY 2020, total revenue was $29.4 million compared to $41.73 million for FY 2019.
  • Net loss attributable to Xcel Brands was approximately $12.9 million, or $0.68 per diluted share in FY 2020, compared with a net loss of $3.4 million, or $0.18 per diluted share, in FY 2019.
  • Adjusted EBITDA was approximately $4.1 million for FY 2020 compared to $7.1 million for the prior year.
  • As of December 31, 2020, the company had cash and cash equivalents of approximately $5.0 million, and working capital, exclusive of the current portion of lease obligations, of approximately $7.9 million. 

Conclusion

Well, as of this writing there is no reason which could justify its turnaround on Tuesday. We hope that XELB will continue its positive momentum in the remaining week.

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