XELB — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-13

• Our brand portfolio also previously included the Judith Ripka brand (through April 27, 2026) and a noncontrolling ownership interest in the Isaac Mizrahi brand (through October 1, 2025).

• Current quarter net revenue decreased by $0.20 million to $1.12 million from $1.32 million for the prior year quarter. This decrease was primarily driven by the loss of licensing revenue as a result of the sale of the Judith Ripka brand in April 2026.

• Our total direct operating costs and expenses declined approximately 2% to $1.86 million in the current quarter compared to $1.90 million in the prior year quarter, as reductions in the Company’s payroll and benefits costs were partially offset by a net increase in other selling, general and adminis…

• Depreciation and amortization expense decreased to $0.81 million in the current quarter from $0.90 million in the prior year quarter; this decline was primarily attributable to the sale of the Judith Ripka brand trademarks in April 2026.

• For the prior year quarter, we recognized a $0.18 million loss related to our equity investment in IM Topco. However, as the remaining IM Topco equity interest was transferred to WHP on October 1, 2025, there were no earnings or losses from equity investments for the current quarter.

Text removed vs the prior filing · source: 10-Q · 2026-05-14

• Also, as of March 31, 2026, our brand portfolio also included the Judith Ripka brand, which was wholly owned by Xcel; this brand was sold to a third party as of April 27, 2026. Additionally, through October 1, 2025, we held a noncontrolling ownership interest in the Isaac Mizrahi brand.

• Current quarter net revenue decreased by $0.19 million to $1.14 million from $1.33 million for the prior year quarter. This decrease was primarily driven by Qurate’s transition to a new apparel supplier for the C Wonder brand in December 2025, which negatively impacted Qurate sales for this brand an…

• Direct operating costs and expenses decreased approximately $0.21 million, from $2.28 million in the prior year quarter to $2.07 million in the current quarter. This decrease was primarily attributable to cost reduction actions taken by management in 2025, which reduced the Company’s payroll and ben…

• Depreciation and amortization expense was reasonably consistent with the prior year, approximating $0.89 million in the current quarter and $0.90 million in the prior year quarter.

• During the current quarter, we recognized a $0.06 million impairment charge to write down the intangible assets related to the Judith Ripka brand to their estimated fair value less cost to sell. These assets were subsequently sold in April 2026.

Text added vs the prior filing · source: 10-Q · 2026-08-13

• We have experienced continued declines in revenue over the past few years as a result of the sale and divesture of our largest revenue-producing brands, and our current level of revenue does not support our operations.

• The 2022 sale of a majority interest in the Isaac Mizrahi brand and the 2024 divestiture of the LOGO by Lori Goldstein brand (and, to a lesser extent, the April 2026 sale of the Judith Ripka brand) resulted in significant decreases in our licensing revenue. As a result of our declining revenue and d…