Chocolate retail firm Rocky Mountain's Q3 revenue falls on strategic exits
Overview
Chocolate retailer's fiscal Q3 revenue fell due to strategic exit from lower-margin channels
Fiscal Q3 gross profit rose to $1.4 mln, driven by pricing and product mix improvements
Company announced new franchise agreement to add 34 stores
Outlook
Rocky Mountain Chocolate Factory plans to open 34 new stores under a franchise agreement
Result Drivers
MARGIN-FIRST STRATEGY - Co focused on exiting lower-margin revenue streams and prioritizing profitability, leading to improved gross profit and margin
OPERATIONAL EFFICIENCIES - Improved product mix and labor efficiencies contributed to increased gross profit despite higher raw material and freight costs
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| $7.50 mln |
|
Q3 Net Income |
| -$200,000 |
|
Q3 EBITDA |
| $400,000 |
|
Press Release: ID:nGNX9VG0jV
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