What's the outlook for XELB's Q4 2024 earnings?

**Xcel Brands Inc. (XELB) is likely to face continued challenges in Q4 2024**, as indicated by the following points:

1. **Revenue Declines**: The company has experienced a decline in total revenue, with Q3 2024 showing a decrease of approximately $0.7 million from Q3 2023. This trend suggests that Q4 2024 may also see a decline in revenue due to ongoing market conditions and brand sales.
2. **Licensing Revenue Impact**: The sale of the Lori Goldstein brand has led to a significant decline in licensing revenue, affecting Q3 2024 with an approximately $8.9 million decrease. This strategic decision may continue to impact Q4 2024's licensing revenue.
3. **Non-GAAP Earnings Improvement**: Despite revenue declines, Xcel Brands has shown an improvement in non-GAAP earnings, with a 56% improvement in Q3 2024. This improvement could potentially continue in Q4 2024, but it remains to be seen how the company will manage to maintain this trend amidst revenue challenges.
4. **Strategic Initiatives**: The company has been navigating challenges with strategic brand growth, as seen in Q2 2024 where net licensing revenue increased by 16% year-over-year. The success of these initiatives in Q4 2024 could influence the overall earnings outlook.

In conclusion, while Xcel Brands has shown some positive signs in terms of earnings improvement and strategic brand growth, the revenue declines and licensing revenue impact suggest that Q4 2024 may present continued challenges. The company's ability to sustain non-GAAP earnings improvement and navigate revenue declines will be key factors in determining its Q4 2024 earnings outlook.