Planet 13 Holdings Inc. (CSE:PLTH) released its year-end results on Tuesday and it also provided an update on the performance of its SuperStore.
The Company’s sales reached $8.3 million in the three months ending December 31, which was up 145% year over year. For the year, revenues came in at over $21 million and were also more than double last year’s tally. Unfortunately, rising expenses wiped out The Company’s gross margin as Planet 13 recorded a net loss from operations of $2.4 million for the quarter and $3.4 million for the entire year.
During the past quarter, the biggest increases in terms of dollars came from general and administrative expenses, which were up $4 million. Sales and marketing expenses were also up more than $1 million from a year ago. Other operating expenses brought the total net loss down even further, to $3.3 million for the quarter. For the full year, Planet 13 recorded a loss of $10.7 million as acquisition costs of $4.7 million put the financials deeper into the red.
However, given that The Company’s SuperStore started generating sales in November, it’s not unreasonable to see a big influx of expenses during the last quarter. It’ll be interesting to see how the numbers look quarter over quarter and whether costs are outpacing revenues or if Planet 13 is able to inch closer to breakeven.
SuperStore results continue to be strong
Planet 13 has continued to see impressive sales growth from its SuperStore. Not only is The Company seeing more sales, but traffic is continuing to rise as well. Although the average ticket fell in March, at $88.58 it’s still a very decent average that’s well up from November when it was only $79.82. The store had nearly 100,000 visitors in March and with a strong 4/20 it could come in well above that mark in April. With a 26.8% growth rate from the previous month, it was the biggest increase the store had seen thus far.
Company looks to sell customers on the overall experience
Planet 13’s goals are ambitious as The Company is planning expansion for its SuperStore and hopes to captivate customers to get them to come back and tell their friends. It’s looking at building more than just a cannabis store, but an experience that will bring even more visitors through its doors. In a city that’s all about the lights and big events, Planet 13 is banking on that model helping bring in more sales.
Successful retail and entertainment brands build value and competitive advantage by creating memories and connection. While the tongue-in-cheek expression we are all familiar with is – What Happens in Vegas…Stays in Vegas – we are counting on the fact that the Planet 13 experience will not only be remembered but talked-about when people go back home to other cities, states and countries, both driving long-term advantage to the Superstore location and paving the way for additional expansion into other legal U.S. markets
– Larry Scheffler, Co-CEO of Planet 13
Currently, Planet 13 is hanging its hat on one big store in Las Vegas. And while that might seem like a risk for investors, it’s an approach that is a nice change of pace from other cannabis companies that are overly aggressive when it comes to expansion. As The Company builds a model that works in Las Vegas, it can then try to replicate those results in other key areas across the country.