Also lifting the stock was a positive report from analyst Eric Beder of Wunderlich Securities who reiterated a “buy” rating on the company and pegged it with a $11 price target.
Beder said given the company already pre-announced quarterly results in January, “actual results were somewhat anti-climatic. That said, it was a solid quarter, with revenue up over 30 percent year over year, reflecting new brand launches (Halston) and continued solid results from the core Isaac Mizrahi brand, as QVC continued to expand its support for the company’s brands both online and in terms of broadcast hours.”
Regarding C. Wonder, Beder described the relaunch on QVC earlier this month as “a smashing success, with spokesperson Brad Goreski offering a compelling assortment of fun and contemporary women’s apparel.”
The analyst also noted that a “rare move by QVC, it is launching C. Wonder in France, Germany, Italy and the United Kingdom in April, one of the fastest expansions in QVC history.” The brand is also set for an expansion at Hudson’s Bay for the Fall 2016 season as well as “shop-in-shops.”
Beder also noted that the rollout of Mizrahi New York, Halston Heritage and the Highline Collective brand shop-in-shops are “set for mid-April, offering Lord & Taylor and Hudson’s Bay a turnkey 360-degree licensing solution driven by faster fashion and compelling offerings.”
Robert D’Loren, Xcel’s chief executive officer, said in the quarterly report that fiscal 2015 was “a year marked with significant milestones and strong business performance.” The ceo said milestones included “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.”