Xcel Brands Inc. delivered quarterly earnings that put the brand company back in the black.
Net income for the fourth quarter totaled $768,000, or 4 cents a diluted share, up from a loss of $552,000, or 5 cents, for the same period one year ago. Adjusted earnings per share totaled 10 cents, which was inline with the FactSet estimate of 10 cents. That turnaround helped push the stock up over 4 percent to $5.75 in after-hours trading.
Total revenue for the three months ended Dec. 31 increased 34 percent to $7.5 million from $5.7 million a year earlier. It was still short of the FactSet estimate for sales of $7.8 million.
For the full year, the company’s net earnings were $2.6 million, a nice jump over last year’s net loss of $1 million. Total revenue for the full year was $27.7 million, higher than last year’s $20.7 million.
“Fiscal 2015 was a year marked with significant milestones and strong business performance fueling robust growth to our top and bottom line,” said Robert W. D’Loren, Xcel’s chief executive officer. “These milestones include our successful up-listing to the Nasdaq Global Market, a completed public equity offering, the strategic acquisition of the C. Wonder brand, the launch of H by Halston brand on QVC and the creation of a quick-time-response or short lead-time supply chain to improve and maximize full price sell-through for our retail partners.”
Xcel did not give guidance for 2016, but D’Loren said the company was well positioned to achieve continued revenue expansion, increased profitability and growth across the portfolio of brands.
Those brands include Isaac Mizrahi, Judith Ripka and certain rights to Liz Claiborne and H by Halston.
Xcel Brands stock has fallen 21 percent over the past 12 months, hitting a 52-week low of $4.66 in February. Since then the stock has recovered and gained over 5 percent in the past 4 weeks.