The stock of Xcel Brands, Inc. (XELB) saw a rise of 11.27% in the Pre-market to reach at $1.58 at the time of this writing. Previously the stock closed at $1.42 in the market. The volume of shares traded was 1.37 million. The main reason of this increase in the value of its share could link to its recently announced financial results of its third quarter.
Financial highlights of 3rd quarter:
- The revenue of the third quarter was reported to be $11.3 million. This is an increase of $3.9 million or 52% with respect to the previous year’s same quarter. The Xcel Brands, Inc. (XELB) reports that the increase was seen due to the higher net wholesales and direct Business to Consumer (B2C) sales and higher licensing sales of almost $2.3 and $1.6 Million respectively.
- Xcel Brands, Inc. (XELB) reported a net loss $1.1 million. The net loss in the previous year same quarter was $0.4 million.
- The net loss per share in this quarter was ($0.05) and prior year this loss was ($0.02).
- The adjusted EBITDA of Xcel Brands, Inc. (XELB) was approx. $1.0 million and $1.4 million for the third quarter and the 3rd quarter of 2020, respectively.
Major milestones achieved in the third quarter:
- The increase in the net wholesale and direct Business to Consumer (B2C) sales was witnessed.
- Direct Business to Consumer (B2C) sales saw a growth of 150% across their Longaberger and Judith Ripka brands.
- The wholesale apparel business saw a growth of approximately 56%.
- The wholesale jewelry business witnessed a massive growth of 400%.
Balance sheet of Xcel Brands, Inc. (XELB):
- The balance sheet of Xcel Brands, Inc. (XELB) was seen to appear strong. Its stockholders equity summed to a total of approx. $81 Million. Their cash and cash equivalents were almost $4.0 million.
- As of 30th September, 2021 the working capital was $8.9 million.
- The total debt on revolving credit facility was reported to be $25.2 million.
Conclusion:
The announcement of the results of their third quarter brought an impact on the stock of Xcel Brands, Inc. (XELB). This impact seems to be there for upcoming days on stock of Xcel Brands, Inc. (XELB). Investors will be keeping an eye on the fluctuations of its stock trend in the near future. Although there are no significant news by Xcel Brands, Inc. (XELB) which could have an important impact on its stock.