Rocky Mountain Chocolate Factory Q2 net loss widens as revenue dips

Overview

• US chocolate retailer's fiscal Q2 revenue declined slightly from a year earlier

• Net loss widened and EBITDA loss increased from the prior-year period

• Company completed $6.6 mln sale-leaseback of Durango facility after quarter end to repay debt

Outlook

• Company says increasing production at Durango facility remains a key priority heading into the holiday season

Result Drivers

• PRODUCTION EFFICIENCY - Co said improvements in production processes and execution contributed to a recovery in gross margin during the qtr

• PRICING ACTIONS - Co attributed improved gross margin to pricing actions taken during the qtr

• STORE BASE EXPANSION - Co said increased retail sales were driven by a larger company-owned store base and price increases, partly offsetting declines in other areas

Company press release:

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)