Naples Soap Company, Inc (OTC PINK: NASO), a health and wellness brand that offers high-quality skin and hair care products, today reported third quarter financial results for the period ending September 30, 2022.
- Total sales for the three months ended September 30, 2022 were approximately $2.31 million compared to approximately $2.26 million for the three months ended September 30, 2021, a 2% increase. Total sales for the nine months ended September 30, 2022 were approximately $8.08 million compared to approximately $7.52 million for the nine months ended September 30, 2021, a 7% increase.
- Store sales for the nine months ended September 30, 2022 have increased 12%, compared to the nine months ended September 30, 2021.
- Gross profit for the nine months ended September 30, 2022 was approximately $5.81 million compared to $5.69 million for the nine months ended September 30, 2021, a 2% increase.
Operating expenses for the three months ended September 30, 2022, increased approximately $303 thousand, or 17%, compared to the three months ended September 30, 2021. The increase was primarily driven by the following:
- The Company incurred additional expenses with the March 2022, opening of its retail store in Kissimmee, Florida.
- The Company relocated to a new warehouse space with administrative offices in September of 2022 and incurred expenses for both facilities, while the new space was under construction. In addition, the Company added additional warehouse and administrative personnel, in anticipation of the holiday season and expected growth.
- Net income for the nine months ended September 30, 2022 was a loss of approximately $130 thousand compared to net income of $1.1 million for the nine months ended September 30, 2021. It should be noted that in 2021, the Company received a PPP loan, ERTC refund and insurance proceeds totaling approximately $630 thousand.
- The Company continues to experience an increase in costs for several expense categories and in cost of goods sold, as a result of the macroeconomic trends, including 40-year high inflation, rising interest rates and supply-chain pressures. These events are impacting consumer confidence and their respective spending patterns as consumers have become increasingly price-sensitive as the year has progressed. The Company has several ongoing initiatives to address the current economic environment, which includes reducing expenses and maintaining leaner inventories.
“The third quarter is historically our slowest time of the year. We were pleased to see an increase in store sales over the prior year for the third quarter despite current national retail trends,” said Deanna Wallin, Founder and CEO of Naples Soap Company. “I am also pleased to share that we moved into our new warehouse in Fort Myers, Fla. at the end of September. We’ve been busting at the seams for the past few years. We now have over 19,000 square feet of warehouse and office space just in time for the holiday shopping season.”
About Naples Soap Company
Founded in 2009 by Deanna Wallin, Naples Soap Company is a supplier of more than 300 bath, body and personal care products that are made in the USA. Products are sold at the Company’s 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.
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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