Rocky Mountain Chocolate Factory Q2 net loss widens as revenue dips

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$6.70 mln

Q2 Loss Per Share

$0.14

Q2 Net Loss

$1.30 mln

Q2 Gross Margin

8.00%

Q2 EBITDA

-$700,000


Reuters Recommended Reads

  • Oct 19 - Chocolate maker Lindt ousts CEO after poor European results, two outlook cuts

  • Oct 19 - Global food inflation is expected to intensify as supply shocks pile up


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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