Naples Soap Company, a subsidiary of the GNS Group, Inc. (OTC: GNSG), a specialty retailer known for its high-quality skin care, today announced financial results for the third quarter of 2021.
Despite the worldwide impact of COVID-19, Naples Soap Company has continued to experience strong sales as the natural beauty industry, fed by consumer demand for natural products, continues to trend favorably. Over the past twelve months, from fourth quarter of 2020 to third quarter of 2021, the Company has experienced a 48% increase in total sales reaching over $10 million in sales for the annual period. Sales increases by revenue stream for the past 12 months were up as follows: store sales up 57.9%, wholesale sales up 35.0%, e-commerce sales up 24.2% and Amazon sales up 200.9%.
Company profit for the past 12 months was $1,420,815 and total operating profit for the past twelve months was $1,005,900.
For the Third Quarter of 2021
“We’re pleased with our results through the third quarter of 2021. The natural beauty space continues to grow, and we’ve seen an increase in demand from new shoppers and repeat purchasers both online and in stores as well strong sales from our wholesale customers,” said Deanna Wallin, Naples Soap Company Founder and CEO.
Total sales for the third quarter of 2021 were $2,262,402 which represents a 49% increase over 2020 and a 5.4% increase over projected third quarter sales of $2,147,000. Historically, the third quarter is the Company’s weakest quarter in terms of sales volume and profit, due to normal seasonality of the period. The Company experienced a $26,716 loss for the third quarter, an improvement from the projected loss of $62,879, and an improvement from the third quarter loss of 2020 of $103,445.
“July through September has always been our slowest quarter. Seasonally, people are shopping less, and our Florida stores see less foot traffic during the hot summer months,” stated Wallin. “With that said, our brick and mortar sales were up 80.6% over the third quarter of 2020. Likewise, wholesale orders were up 50.0% and product sales through Amazon were up 70.9%.”
During the third quarter, Naples Soap Company launched a number of new products including an expansion to the Vitamin C face and body care line, more than 20 new gift sets, new SPF face care products, and a cellulite firming sugar scrub. The Company plans to launch an extended line of body care products in one of its best-selling soap scents in the fourth quarter.
In July of 2021, the Company executed a lease agreement to relocate the Company’s warehouse and corporate headquarters to a larger facility just miles away from its current location in Fort Myers, Fla. The Company has executed lease agreements to expand its retail footprint in the first half of 2022 with the opening of three new stores in high growth locations including Boca Raton, Kissimmee, and Santa Rosa Beach, Fla.
Stock Symbol Update
Lastly, the Company has started the process to change the current name of GNS Group, Inc. to a name that is better aligned with the Naples Soap Company name and brand. This corporate name change will prompt the need for a new stock trading symbol and CUSIP number.
About The GNS Group, Inc. and Naples Soap Company
Founded in 2009 by Deanna Wallin, Naples Soap Company is a producer of more than 300 bath, body and personal care products that are made in the USA. Products are sold at the Company’s 10, soon to be 13, retail locations in Florida. Naples Soap Company products are sold online from the Company’s website at www.naplessoap.com, through other DTC (direct-to-consumer) channels such as Amazon.com and in more than 300 boutiques, spas and stores throughout the United States via the Company’s wholesale division. For more information about Naples Soap Company, visit www.naplessoap.com. Naples Soap Company is a wholly owned subsidiary of publicly traded The GNS Group, Inc. (OTC: GNSG).
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are subject to uncertainty and may not come to fruition. Readers are cautioned not to place undue reliance on any forward-looking statement including statements that list numbers and dates.
Deanna Wallin, Founder and CEO
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