Earnings call transcript Q2 2023

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Operator

Hello, and welcome to Xcel's Second Quarter 2023 Earnings Conference Call. My name is Krista, and I'll be the conference operator today.

We will have a question-and-answer session the end of the call. [Operator Instructions].

I will now turn the call over to Andrew Berger, Investor Relations. ahead. go Please

Andrew Berger

and the everyone, We for us. joining appreciate Good Brands' thank Second to interest. Xcel participation Call. Quarter Welcome your evening, and you XXXX greatly Earnings

Chairman us and Chief With Officer, and Development of Haran; Vice Jim call Burroughs. and the today Treasury, Financial Chief Officer, Seth Robert on Executive D'Loren; President Business Executive are

on company which Relations By and replay call plans in a report quarter the website. is ended second be quarterly company's release for Form now, everyone report on Investor and the webcast, the will And its with XX-Q be should file evening. tomorrow. have XX, to release available This had went being XXXX, quarterly Securities access available addition, Commission The this website on the to the www.xcelbrands.com. at company's will earnings the Exchange out June and

means in begin, results are at expectations SEC. forward-looking statements today. factors All change any what of explained events, forward-looking could to any please not we recent does will that These update company's or annual that in is The dynamic a call discussed publicly otherwise. call or said time. in this cause materially current revise most Before to uncertainties filed undertake contain environment new the the forward-looking keep with from macroeconomic report as Xcel whether the that risk certain future statements. on statements, obligation differ and result any information, of nature materially could subject mind are here this detail risks to actual

non-GAAP earnings EBITDA. including to on will per non-GAAP share, that management net note refer please adjusted certain non-GAAP Finally, call, and financial measures, diluted income, today's

a assist results non-GAAP to basis of metrics company's consistent the relating to management in and of on period as to operations. measures Our performance identify to trends from uses business period comparing performance operating these

events evaluating and supplemental they for are that core measures operating Our thus, also assist are useful these of to or measure in because GAAP. our net and as non-GAAP costs These management financial results. share other believes certain provide accordance presented any not these performance should in to isolation considered representative in information income, calculated investors financial other financial adjust not earnings business management or the of be per And performance company's measurements alternatives measures results. believes with

a attachment may to release the earnings of to refer non-GAAP measures. X or Item the for to Part reconciliation company's You the Form X, of XX-Q

go introduce I'm D'Loren, ahead. now Chairman and Officer. Robert pleased Bob, And to Chief please Executive

Robert D'Loren

you Good joining Andrew. thank everyone, you, evening, us. for and Thank

an new to would start strategic model. more call is will I discuss performing business efforts today's how operating under with like transformation results CFO, our the Jim detail. Haran, that, update and our financial After on in our our

to strategies. from we model and working that restructure of commerce profitable social livestream began the working growth on and to wholesale high-touch in model business first a is business focused capital licensing, highly shopping quarter shifting operations, Starting capital-intensive XXXX, our a business light,

we we have businesses. During execute completed transition and to operating that substantially continue pleased plan, quarter this the to I'm second this report XXXX, our of on of

in of expense in are all end of the as going million fully realized expected costs the These and XXXX to be quarter efforts in operating third $X quarter to lower million on began an expenses million and payroll reduced of costs. As a of of of first result to cost approximately the annualized save savings our forward, XXXX. $XX we by compared expect operating XXXX $X including restructuring basis approximately levels,

ramp of with this and that in these brand year, continue our Our by will launches cost return current XXXX financial profitability will combined by savings and XXXX. new forecast indicates to that from to end revenue we licenses grow driven in the

these commerce by have which with spoke we new call challenges going social technology a extraordinary new new about many significant and transformation, provide cost of some and engaged advantage last on company this today's evolution quality licensing of powered which solves arrangements of through attractive business exceptional quarter's at this that will our our I offering and competitive and into livestream are best-in-class that partners in agreements, model while effectuate operating our forward, entered with quarter. savings some e-commerce, multiple To believe of the prices. customers We

engage brand to operations G-III we e-commerce payments, distribution under apparel which enable not a which the agreement will royalty assumed brand signed technology rate taken at were and license licensing ways streaming stores, live of right and is has licensing license all together G-III with past. with customers Group requirements, end in the and royalty, for retailers. minimum In the other This over guaranteed our certain acquire in existing minimum master a believe G-III fully wholesale Apparel includes the for guaranteed sales for a of contracts May, our entertain with escalating market us certain and also that We and department agreement, to possible the in brand, the a the Halston advances, term. XX-year

meaningful their stores. We started fall department agreement plans at of G-III growth Halston when expect will launch XXXX line of to better to in but realize that second revenues the this XXXX come from quarter more in

capabilities, partnership wholesale us of publicly assigned to to in brand, next the grow license have production year has and the to of Our they are annual the level. G-III brand they a to the million X globally develop agreement. take talent premier Halston provides by their targeting some and and to sales their given $XXX Halston distribution stated that G-III, extensive management tremendous grow with brand with opportunity the

partnership in We with about we our the of wholesale best G-III, long-term are believe our is excited one industry. companies

on is scheduled the the of known, entered brand to on largest rapidly retailers Ripka to first appearance one jtv.com into launch. X, is air the of celebrity quarters all has and on launch it a with TV. October new in JTV jewelry in a the second For Jewelry JTV, as planned launched our on July Judith U.S. business segments The agreement our for brand, licensing Ripka and surprise we move become in Judith to

expect brand on-air with compared first year We have beyond. significant will the to increased for QVC and in presence JTV the dramatically network the airtime

the through Also, business and forward. royalties license wholesale month, on provides and distribution their on wholesale the on JTV's we television, the generated and XXXX. remaining inventory a jewelry JTV businesses. as connection is royalties well direct-to-consumer partners and wholesale sales outlets exciting with of grow agreement executing our brand judithripka.com in licenses, to in sales JTV under wholesale presents launched retail going all fantastic In profit as This and e-commerce, with for sold judithripka.com this judithripka.com JTV on the a management believe on net TV, last opportunity of and other we our April share

show HSN sales we the continued the on during March QX. first strong of For our planned brand, of C. end over and sales at Wonder with achieving XXX% launched to gain momentum

best the in During to The exciting HSN an for second is some extensions of of This commenced [indiscernible] points it are license on appearances quarter, Christian of had licensed Siriano's we other noted distribution. industry-leading OJG HSN C. categories or the and for multiple OJG. during apparel across license working has Wonder supplier and Jeanswear brand. its the quarter, XXXX been week second business our One call. wholesale Group reported in production earnings

commerce new September social American direct-to-consumer sometime with into our and brand an Finally, our we creators supermodel. platform. brand TV influencers and continues portfolio on a launch building and expect livestream This be to push announcing a HSN in drive of iconic to

With social a marketplace. respect to the believe in Longaberger are of plan the commerce will technology our commerce that we into general brand, and launching product commerce revolutionize social e-commerce of social process home Longaberger version incorporate we and latest to our in

In exceeding last Finally, second second quarter XXXX by QVC quarters. Isaac sequential one-time with conflicts quarterly Remote the to sales in due and increase net to Lori regarding and on-air during and logo television well of brand business, the quarter planned of for interactive below level. QVC this brand to of performing QVC return is and scheduling are quarter coordinate the sales Isaac to worked expect half we XXXX sales and for items connection, scheduling improvements the rebound sales was return The certain plan Isaac's Goldstein the a on in our three with making Mizrahi latter in to with the rate on XXXX Isaac. Studio in

now to like turn to results to And Jim? our discuss I'd the Jim highlights. and call over financial

James Haran

everyone. Bob, and Thanks, evening, good

ended I quarter X June XX, results for will and months XXXX. our briefly discuss financial the

from of a sale second JTV. approximately approximately million arrangements $X.X million decrease in the our the and driven our with increase first was from million Jewelry Total sale second by revenue the a an XX% licensing of the of an by XXXX. in quarter to Isaac with Mizrahi quarter of majority Ripka XXXX, the but entrance quarter offset of million XXXX the current of XXXX approximately connection JTV approximately Judith the contractual brand decrease of representing million, sales, in quarter Fine This year-over-year revenue, net partially the decline inventory $X.X $X.X May prior due revenue $X.X to interest new $X.X primarily year with attributable a of largely into was to in the or compared from increase for quarter in

largely transformation the decline HSN decreased majority from and year business sale apparel by X to of of On revenue $X.X million increase C. inventory a million. and sales, of X basis, Wonder attributable the Judith driven sale an Wonder This by part of the of the as decrease prior $X.X months Jewelry net current offset partially Fine to primarily the revenue in revenue, million to of to licensing due Mizrahi interest in our C. was and year-to-date restructuring operations Isaac launch product in in months brand. $XX.X brand and a for our approximately the inventory Ripka by million the approximately the $X.X the

year Gross the of decreases basis a which inventory margin at our year XX% current The product These from approximately the discounted prior were the included our prior the result sales period. at inventory. profit inventory prices. portion June had company was the only XX% exiting on from wholesale the X-month decreased decreased sale also XX% in Longaberger business, quarter of in current XX in the year approximately to XX% to months and the year-to-date in from X quarter margin in operations gross of

our and period, or year quarter, in the $X.X expenses cost operating a in year million year-to-date the basis, from down million quarter. X in for XX% prior current or $X.X million the were $X.X $XX.X year down by On expenses and prior Our million million current by the $X.X XX% cost from $XX.X operating million were months.

the Isaac attributable decrease and this operating transformation costs was both expenses and brand. periods, and in with Mizrahi For of restructuring quarter year-to-date business the the primarily associated our to

quarter significant costs the XXXX. debt a of We expect to run interest in finance or operating of did to by not our X the expense approximately rate of We months any in quarter all $X reach the decrease will amount that quarter in fully our the continue and second have repaid of as XXXX. end of per current term expenses loan we outstanding current million

net million Overall, per the million $X.XX prior of also minus represent XXXX we with majority prior of The the current for interest gain had of quarter's an the improvement year interest Isaac or $XX.X results income sale quarter for noncontrolling quarter $X.X Mizrahi approximately per on The a current the loss loss quarter. share. per million first a share $X.XX included net of of net or share or excluding in $X.XX the compared $X.X brand. $X.X year of quarter the million

negative compared compares million EBITDA XXXX, The for per quarters March net quarter's quarter prior a million compared $X.X net EBITDA two December of and current XXXX, quarter. basis, the $X.X non-GAAP or share the immediately XX, for or we XX, of minus had year $X.X loss the per in with adjusted current a favorably quarter. million negative $X.X $X.XX in with million million and respectively. ended minus Adjusted $X.X share was preceding adjusted of negative quarter million negative of current in prior $X million year $X.X with EBITDA On a loss $X.XX the

For currently monthly achieve the the XXXX. EBITDA by our balance continue as adjusted plan, result of positive that of of to we expect we improve and to a transformation XXXX, year, restructuring and EBITDA the throughout project will end we the

to noted the be current includes and and to EBITDA It jewelry businesses should have relating operating costs an adjustment been third certain for apparel transitioned the parties. these as losses that reported wholesale operations

minus net net $X.X or comparable in months a $X.X share of loss had $X.XX million share income or prior $X.XX non-GAAP million minus million loss, compared $X.XX basis, the basis, per in excluding interest of On period. a year-to-date current compared per per share of our period. X net months year minus X-month per noncontrolling we the for prior with current or net $X a was approximately X with $X.X or for the loss year On a share the $X.XX million

negative million prior EBITDA months. EBITDA million X the as of And was representing non-GAAP terms. finally, income, net EPS, $X.X a current $X.X non-GAAP the again, million X and adjusted $X.X reminder, negative year a improvement unaudited And over in months, once EBITDA adjusted for are non-GAAP diluted

press present items a reconciliation GAAP measures. directly XX-Q comparable with the earnings release and these Our Form most of

balance our Now turning to sheet.

was the include million, cash obligations. equivalents new our and As of a million XXXX, and going this, of company and Under portion our had believe financial expense Halston payment. approximately May upfront cuts new position, in certain of the cash capital our for projections, our XXXX, lease license excluding June adequate $X forward. positive coupled liquidity $X.X brand, provides XX, strategic licensee current which the with the we working [indiscernible] The working executed cash with with net of current capital company

would And to the with like turn over to Bob? call back I that, Bob.

Robert D'Loren

This Jim. concludes remarks. Thank you, our Operator? prepared

Operator

Instructions] question Your line from of Sidoti. Anthony comes Lebiedzinski [Operator the from first

Anthony Lebiedzinski

expectations bottom the better line here. than on Sales

So of first, your the we in quarter, have I revenue licensing part guess, anniversary the the of past as now sale X-year third Mizrahi. clean we're will for the Isaac comparisons starting of

you a of done lot certainly the mentioned agreements. signing busy been Bob, have but you with work, licensing you've retail environment, challenging new So

about piece of forward? think going overall we should business your how licensing just So the revenue now

Robert D'Loren

When look specific? you say it, at how should can be we Anthony, you

Anthony Lebiedzinski

better challenging year expect far about Do to the to as should this to of Just wanted we balance expect get retail even what you how with grow that environment? as think from as sense far a the the as For you as here. revenue.

Robert D'Loren

are trending QVC well, Sure. they down for We're overall. Overall, the year. at QVC, better than

little So from as we didn't royalties what we've coming really a there our be anything plan of Isaac. were forecasted. interactive high returns were on below looked that that the some product We businesses and expect see very our perspective. will carefully were we're was items television from It a -- We returning.

that into here. will better what so. and QX? But likely still be months we're that? understand to We So trying the the drove case going And think know as it is by QX that don't go we'll

'XX. say, as of would all licenses, it in fall only contracts. relates those the new G-III I modeled launches to we've of the minimums under in

So business. scheduled that until have have they for we'll collect under is be JTV, continuing judithripka.com both to on-air and launch. the shipments begun The for agreement And launch launched online, for wholesale they and mid-October. minimums they

doing planned hours very the we'll for that be that's the around given then is all Assuming anticipating the event schedule, show happens that JTV marketing a there, on to number launch off strong the of we're that the start and big and launch.

of the as is country. speaks be I then these in, with are into every distribution. of one see all in big in to think, of of begin we business all for as jewelers call, really of ramp outsourced royalty the we're 'XX, are could One JTV wholesale in fairly in as with. And best-in-class the the 'XX, next comfortable of on our So apparel And largest them partners to significant almost 'XX year, forecast. going going up. terms that a G-III, the revenues said pickup And kick we're programs where has in a point itself. very become these I we Jeanswear across

So go on we will very core the brands. think royalties on where bullish we're

Anthony Lebiedzinski

maybe then, left about only hear. Jim, And have things you inventory to other divesting great Longaberger. on the is balance That's that previously the mentioned you or sheet I vivid. it. some the potentially know from Absolutely guys discussed doing with Longaberger

So you have thoughts updated that any on do brand?

Seth Burroughs

we but would I be Anthony, that, quarter, next it's that on the should that, address have company. that I the in to to We're still an favorable expect update say, would working can on Seth.

Anthony Lebiedzinski

updated the And that to with us? of of can anything marketplace is what guys on Okay. and you said with or previously? kind terms good your of you any else launch That's Or in do app have more or consistent it timing thoughts then hear. less you social share

Robert D'Loren

done. So in it's it fairly consistent. the The technology testing Longaberger We're is now. community

Of broader course, it that will turn a into We're that this for marketplace anticipating will be approach. of year. holiday

Anthony Lebiedzinski

next on of it caller. I the All luck. to right. Best hear. to That's pass good Thanks. will

Operator

comes Your the next Aaron Breakout Investors. from line Warwick of question from

Aaron Warwick

on you restructuring. that guess, latest Good ask of I with, wanted presentation I'll to calla evening. job the things in investor great taking Thanks about, Several congratulations your and I on for this have your $XX that for million for understanding? right million you is EBITDA. year upon minimums now for have that's that My revenue next royalties. accurate website, based understanding contract Is the showing $X that and an begin

Robert D'Loren

One $XX to There's you of in QX, small of occurred that sales need because we there you television QX. historical executed. help back to sales million interactive revenues were out agreements new And businesses. 'XX, minimums million out of $X.X two, and it. to a that those licensing And our million forecasted and components in top-line coming few the two $XX the then, 'XX is are in wholesale contractual compare to would to 'XX

royalties apples-to-apples, it's $XX million 'XX of get So in and in 'XX. $XX to royalties million of

Aaron Warwick

from upside remarks. It built said prepared model. then what that's you've sounds that your like into in not some there's though really potential, previously And

Robert D'Loren

here. wholesale that by our our correct us is business call, market of X It that big you'll average for be relates made JTV, earnings At think couldn't $XXX the X be to of jewelry with growth business statement hour has should we're year. million expect see the be things there for expecting they was partner fourth No a over the hours doubt, significant over as or has And particularly to of on XXX picked better I to there. Ripka most a in the a their it as do This And business launch royalties. of And with last X for guidance. the very at G-III not quite royalty that just year time if coming rate, frankly, brand. exited QVC going up out lot that license. on JTV some last math QVC the years, from you part will on-air in share. Judith We're the

very we're So too. potential the excited about there

And new of have robust C. we our Wonder very doing pipeline a Christian Siriano brand TV, well. incredibly going brands interactive into is

In potential as we it with launch with from here today, until who closer her. to I have knows can't we on we say shooting brand with, we supermodel, fact, live a launch. York. our TS get we TV with and a interactive we New television. name. we've studio the household in brand And is speak But the going both Everyone great little of outside are a to the are think created the it's interactive

So business. we're core about the excited

Aaron Warwick

Fantastic.

the sounds a from XX It made And they're at upfront minimum going they more they option G-III, one-time purchase the like then So payments making plus of payment. than end the correct, to have that that. is be years, you? to the brand, annual potentially

Robert D'Loren

Correct.

Aaron Warwick

was? can and what a would I number, that payment And royalties from give mean, the ballpark you be the expected us what

Robert D'Loren

conference on stabilized this Yes. some think we calls, I've the given of royalties.

the per that a million If license that asset. land to XX place will years, million $XXX is for And it's us generate. in a about great over royalties that at think year, plus model I you with run the $X

Aaron Warwick

present cap, you given market positive that the for that, mean on sort I value flow you of extremely contract if than cash fact look at higher discounted or that's guys. any Yes. it's your net current the

It the wanted caller? things. holiday have out to said bit a commerce previous the about you to more I social that the season. what sounds you you ask like before little said to side be ready Is of should that

Robert D'Loren

Yes.

into model. haven't our We the launch any in investments made the the modeled have been assumptions marketplace about The tax. of

spend there. no So needed

lot the certain industry a marketplace, in rules in with is spend working very interested because the technology just that privacy something are on Return cases, industry ad within serious that industry suddenly friends, are becoming e-commerce losing have competitors industry, the the some changed are in We money. of since intolerable platforms a solves today. is joining the problem

return of influencers it's audience And for it ad then sale. on grows is a And we doesn't distribution the XX% our sales, not in us, a of It's with terms our lot of spend channel operations. course, there another until platform is pay pay and operating as provides And because this platform, risk infinite of that whatever then, brand is. the overhead a marketplace for model, of our brands and celebrities. the in

a launched. will So read-and-react taking it we're approach, we get

how else see launch brands have quarter will begins with the revenues that We we'll learned And forward. then, start we'll have use social think base what first our to we the after scale, a over the good the customer to media, in signed customers. it forecast and going anything with like own us from with we

Aaron Warwick

brands you? should types some many expect the what's nature these there? household the we What And with brands? of names? signed of How of Are have

Robert D'Loren

And It's in and more them for are customer in big we'll about and it. little be those holiday. are Most excited we'll who the brands, we're with years, the a been launch. be names, happy very household X.X launching connection we're bases announcing years big of that works, X

Aaron Warwick

this business I differentiated a is advertising, would how helpful? to current their going guess in platforms speak just social bit and so And little if about, the you media of could from maybe be be model

Robert D'Loren

application desktop the well to to is shopper a chase, So do for It's influencer. to application democratizing cut and really ad what and an we're the into to as dollars. the marketing the user from paid app shifting is, there's everyday dollars it's The really advertisers turn people. technology here as to a striving

or TikTok get a and buy, a follower paid. app it if the the as they friend So as really or influencer content. with a is to piece easy they And creating shopper shares of the use. easy It's

the in dollars ways, to the from shifting it's many So advertisers ad people.

Aaron Warwick

like I something you the guess And Yes. how of to until brands sold. I I have before. it hadn't highlight. know how is pay I thought don't

So correct? they're advance in the item that actually sold, influencer paying once of guess Is nothing that. them I they're is paying an but that

Robert D'Loren

the And problem the the Correct. is works. with it model way

a darts like influencers throwing in advance. bit and is advertising paying digital Now

don't know going just how You they're convert. to

So of blind again, cases. it's a bit a many shot in

Operator

[Operator the next from Debra Equity question from Research. Instructions] Your line comes Fiakas of Crystal

Debra Fiakas

go. Good it about evening. effort. to that pleased your opening relationship. Thank just I Judith little really to or the And my things for appreciate you more tease, you got are to perhaps where chronological question a launch bit looking taking sort of tell tell with I'm in We've ask we could appearance? let wondered, a can't permanent and help sort the Is of hoped. for the on course, going your remarks JTV. probably about got it that you that I the hear a us questions. restructuring had celebrity you name, of us rundown can't on of to And Until expected as I part your little just gave but a you're Ripka you be the one-time to

comes little super including you maybe do go how later tell could do with us you the them? a this about bit these that model more luring that, compensation little celebrities, you the fall, craft your also then a how And relationship along about

Robert D'Loren

to try a I'll sequential. that questions. of on couple a were answer those So

the study air big Heidi and But we appearances a will years with has couple kick-off the bringing on with years will not the do on during the expect to the for make And for Ripka, with us guest multiple show, over to really the for Judith XX daughter-in-law of market close XXXX. really celebrity and new who through brand hours of be if products going is our is superstar family, JTV. Ripka. So on been great familiar Heidi that well really, you're who is was Ripka this, for to in she

has do over their reputation would operating as on sell One, to and make question, have, of I behalf working to television. hours part product we with as and for your say, QVC talent? how the doing talent on Xcel attract after second The HSN we great many developed

many by one said players. $X QVC sales we've year, We're of measure. the passed As largest every billion times, on we in this

We about this. have XX,XXX tends come to us doing over like hours when thinking Talent to programming of something time. they're

from launch a different management We as do have the course, marketplace. this talent and managers of outreach at lot we built our then agencies designers of us think film lot a people over A-level or to celebrities We've the been they're an the that with doors. celebrities. or talked sectors, has interesting coming interesting the pipeline we And over different whether It's through various television different years. for years. of and of talent come will to levels conversation accelerate and here celebrities experience celebrities

Seth Burroughs

Seth. is Debra, this But

to look or with billion $X compensate -- We've in been XX over spokespeople. we doing we terms done television. think how this like for We've celebrities and what I years. on for of

have of of don't work. celebrities A lot doesn't good a sense what works what We and work.

who sense does. So we have a good

really or HSN, qualities television And commerce. our on characteristics response QVC so we really experience look our social from direct that and work and well for those

piece money earn We're And and us. together, not partnering, the somebody are who of to the looking it payments, second to partner is then growing to with We looking together. to big business to make who's want upfront huge open fees. people

that So --

Robert D'Loren

opposed that doing found meeting. a a something the not as tell It to live only have that I difference. work X-hour thing there. whether And doing scripted unscripted. the to is someone there's very We And or something big in alignment And can is works. would you add is going to

X We've one fashion think number number We So at good we and learned have I'm on what it. the works. do QVC. shows

Debra Fiakas

That Michael Kors agreeing a was Tapestry group And industry, this helpful. very Capri was of that's bring course, to up, wanted your big the that Excellent. Thank Holdings. also announcement to acquire I now in morning made you.

any, numbers the does I level. see any wondered your all actually like being big consolidation where that somebody that we and if Some does tossed What to you're and of acquire around. valuation want of it aspirations you find increase looking? the are do Or targets hey, big luxury And impact impact additional Is talk on impact, think to what saying, the we deals at groups on have brands? the showing up it number to in there kind that to.

Robert D'Loren

an it's question. interesting So

to to it these them move companies another begin very consolidate, the for takes transaction big As needle.

it's brands quite if the profile, transactions. like into or ways, brands good not Capri And economic a We're because that. in moment, for focus are you media frankly, that billion So some us looking for we're looking that, a will. at companies something fit least for not for are for social high $X new our

we think a companies to Difficulty] is platform smaller we're commerce. going players moment attract the a with understand uniquely social company [Technical very positioned thinking is and everything So streaming that at and and/or forward to to as mid-tier where come

So we're industry. excited. the Today's big within certainly acquisition was

James Haran

brands would Debra, are you when the traditional a that add, I look environment, either at industry. of also lot in there's our or direct-to-consumer brands

of option. it's COVID interest chief these come and financing industry, especially time retail mentioned that As went rates survived the in of as our call, up, era on in a brands Bob longer a COVID have that challenging have the in no lot through

it's lot XX of So apparel a industry skyrocket our we're actually in months. M&A the seeing the of that brands, M&A businesses like feel to over that going world, the we a opinion next lot is in

right look terms and the at what we Bob careful think months. to we XX and the we but of going types a and now as what look see do of very at, over brands we are flow increase deal lot of it's and always, only mentioned, we As next in

Debra Fiakas

the very million think you. has to that squeeze seeing for the $X time rate XXXX. want this I $X you be in achieved for one might could said was Thank by year? in, be a I then the for operating answer, that quarter the next probably Excellent. simple Jim. quarterly a million say, I end first And of suggestive this expenses. question of first run then just to if clarify And of just Jim,

James Haran

a operating say quarter. or X expenses the last pick-up look at you if our I in two the first should million. filed, we reduction Debra, second had was that I So expense we $X.X believe to compared our believe quarter million-plus in quarters I

So see quarter, on third a another the even to basis a $X million quarter, somewhere cuts add, we'll down And to by the costs we'll be are we're cut be forward. play rate run going ways probably And I $XXX,XXX. looking would come at into quarterly continuing further XXXX. fourth those at an to to still in like we

that. get get outside expansions we'll would could year million to any other even arise and down hopefully, below this So change of we'll $X that that that

Operator

no the have this will queue our back currently presenters. we over in at the to turn call I questions time. And

Robert D'Loren

Thank Ladies in you, Christen. greatly for support Brands. We time evening. you Xcel continued and and interest your gentlemen, appreciate your thank this

well, As fit, stay eat healthy. always, and be

Operator

And this concludes today's conference call.

may disconnect. You now

Xcel Brands (XELB) 10 Aug 232023 Q2 Earnings call transcript