Xcel Brands Inc. reported a wider net loss for the first quarter.
For the three months ended March 31, the net loss widened to $399,000, or 2 cents a diluted share, from a net loss of $45,000, or 0 cents, a year ago. After adjusting for certain cash and non-cash items, the brand management firm posted net income in the first quarter of $1.1 million, or 6 cents a diluted share, compared with adjusted net income of $1.2 million, or 7 cents, a year ago. Net revenues inched up 0.8 percent to $8.43 million from $8.36 million. The company said the slight increase was attributable to higher revenues from QVC sales and to its Quick-Time-Response department store initiative.
Robert W. D’Loren, the company’s chairman and chief executive officer, cited strong performance of its QVC business, and that the company “continue[s] to refine our short lead production platform in our department store business.”
The company officially launched its fast-fashion model in September 2015 when it signed an exclusive partnership with Hudson’s Bay and Lord & Taylor. The partnership was for four of the firm’s brands: IMNYC, designed by Isaac Mizrahi; H Halston; C. Wonder Ltd. and Highline Collective, the in-house brand for Hudson’s Bay that targets Millennials.
In March, Xcel expanded its Quick-Time-Response apparel program to Dillard’s department stroes, with H Halston the first line headed to Dillard’s. The floor sets began showing in late March. The fast-fashion program is a supply chain model based on speed to market, and is designed to help retailers better respond to customer demands in real-time, such as the “see-now-buy-now” shopping mind-set.
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