Business
Hour Loop Reports Second Quarter 2023 Results
Demonstrates Strong Revenue Growth Despite Challenging e-Commerce Environment Revises up Full Year 2023 Revenue Guidance REDMOND, Wash., Aug. 09, 2023 (GLOBE
About this update from Hour Loop, Inc.
[{"type":"text","content":"Demonstrates Strong Revenue Growth Despite Challenging e-Commerce Environment Revises up Full Year 2023 Revenue Guidance REDMOND, Wash., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended June 30, 2023. Financial Highlights for Second Quarter 2023: Net revenues increased 51.5% to $22.4 million, compared to $14.8 million in the year-ago period;Net loss totaled $0.8 million, compared to $0.3 million in the year-ago period; andCash used for operating activities was $3.4 million and $12.7 million for the six months ended June 30, 2023 and 2022, respectively. Management Commentary “We are pleased to report our second quarter 2023 results, in which we continue to deliver significant revenue growth,” said Sam Lai, CEO of Hour Loop. “The revenue growth rate for the second quarter was 51.5%, compared with the year-ago period, and outperformed most peers that we know.” “However, our gross margin, compared with the year-ago period, was negatively impacted by the challenging e-commerce environment and intense competition caused by high inventory levels across the industry. Nevertheless, we had some success with the QoQ margin improvement to 50.7% from 45.6%. Our operating expenses percentage remains at a similar percentage to the first quarter because of efforts made for expenses management this year. Overall, we believe we’ve built a solid foundation to continue generating strong growth. We also aim to continue making improvements on profitability.” “Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products so far in 2023. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders.” Second Quarter 2023 Financial Results Net revenues in the second quarter of 2023 were $22.4 million, compared to $14.8 million in the year-ago period. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown and intense competition. Gross profit percentage decreased 5.8% to 50.7%, compared to 56.5% of net revenues in the comparable period a year ago. The decrease was a function of increased market competition, overstocked inventories...