Excel Brands, sales have declined, but are accelerating their shift toward influencer marketing and live-stream e-commerce

Excel Brands ($XELB) performed poorly in sales during the first quarter of this year, but the loss margin slightly narrowed, and business restructuring is still ongoing. Analysis suggests that its transition from traditional brand operations to “influencer-driven” brands and live e-commerce center structures has become more evident.

Excel Brands announced that its sales for the first quarter of 2026 reached $1.1 million. This represents a decrease of approximately 14% compared to the same period last year. In Korean won, it is about 16.45B KRW. The company explained that the main reason for the sales decline was the supplier change affecting interactive TV inventory management.

During the same period, net loss calculated under U.S. Generally Accepted Accounting Principles (GAAP) was $2.5 million. Compared to a loss of $2.8 million in the same period last year, the loss margin slightly narrowed. Adjusted EBITDA was negative $700k, similar to last year’s level. Direct operating costs were about $2.1 million, down 9%, and the company expects the annual operating cost run rate to fall below $8 million.

Financially, the situation remains tight. As of March 31, shareholders’ equity was approximately $13.2 million, cash was $200k, and long-term debt was $12.6 million. However, the company also gained an additional $2 million in cash from the sale of the Judith Ripka brand in April. This transaction was reportedly valued at about $3 million, which Excel Brands classified as a “strategic sale.” The move aims to divest low-profitability or non-core assets and focus on video e-commerce and creator-led brands.

The company also retains additional financing capacity. If needed, it maintains a stock purchase agreement allowing the sale of up to $15 million worth of common stock. Previously, in December last year, the company conducted a round of approximately $2.05 million in PIPE (private investment in public equity) financing. The funds raised were intended for working capital and general corporate purposes.

Influencer strategy reinforced through QVC and HSN platforms

Excel Brands’ latest developments focus more on expanding “content-based brands” than on performance. Following the launches of chef Jenny Martinez’s “Mesa Mia” and chef Gemma Stafford’s “Gemmamade,” the company announced that in September 2026, it will launch a new pet series “Trust, Respect, Love” with dog training expert Zeze Milan on QVC.

These brands are characterized by not merely selling products but integrating creator notoriety, storytelling, and live sales structures. They focus on categories like kitchenware, food, and pet lifestyle products that encourage repeat purchases. Although TV shopping channels like HSN and QVC remain core distribution channels, the company is adopting strategies to connect and expand through social e-commerce.

This approach differs from the company’s previous core investment portfolio centered on fashion and jewelry. In fact, Excel Brands’ sale of the luxury jewelry brand Judith Ripka clearly indicates that its growth axis is shifting from “traditional brands” to “creator-led brand programs.”

Small market cap and high volatility remain burdens

In the market, aside from the potential of Excel Brands’ business transformation, cautious views on its financial strength persist. As of May 13, the stock price was $1.88, with a total market value of about $12.4 million. As a small-cap stock, its price may fluctuate significantly based on earnings reports, financing news, or new brand launches.

Previously, the company reported annual sales of $4.9 million for 2025, a 42% decrease year-over-year, but net losses and adjusted EBITDA showed some improvement. Management expects new influencer brands this year to drive growth. However, it is still in a stage where the actual impact of brand expansion on sales recovery needs to be verified.

Excel Brands will hold a Q&A conference call at 5 p.m. local time on the 19th. The main focus is expected to be on the use of cash from the Judith Ripka sale, the schedule for new brand launches, and the potential for sales rebound in the second half of the year.

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