Business
Hour Loop Reports Second Quarter 2024 Results
Profitability Continues Despite Warning Signs for the Overall Economy Increases Full Year 2024 Revenue and Net Income Guidance Redmond, WA, Aug. 09, 2024
About this update from Hour Loop, Inc.
[{"type":"text","content":"Profitability Continues Despite Warning Signs for the Overall Economy Increases Full Year 2024 Revenue and Net Income Guidance Redmond, WA, Aug. 09, 2024 (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, 2024. Financial Highlights for Second Quarter 2024: Net revenues increased 25.2% to $28.1 million, compared to $22.4 million in the year-ago period;Net income totaled $0.6 million, compared to net loss of $0.8 million in the year-ago period; andCash provided for operating activities for the six months ended June 30, 2024, was $0.9 million, compared to cash used in operating activities of $3.4 million in the year-ago period. Management Commentary “We are excited to report our second quarter 2024 results, in which we continued to deliver double digit revenue growth,” said Sam Lai, CEO of Hour Loop. “In addition, the revenue growth rate accelerates in the second quarter, compared with the first quarter.” “Our gross margin and operating margin were both improved, compared with the year-ago period, because of efforts made for inventory quality and efficiency enhancement, operation efficiency improvement, as well as expenses management. Overall, we believe we’ve built a solid foundation to continue generating satisfactory growth while maintaining profitability.” “Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see good demand for our products so far in 2024. We are confident in our ability to continue delivering value to our vendors, customers, and shareholders.” Second Quarter 2024 Financial Results Net revenues in the first quarter of 2024 were $28.1 million, compared to $22.4 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 increased 5.0% to 55.7%, compared to 50.7% of net revenues in the comparable period a year ago. The increase was a function of improved product costs, enhanced inventory quality and efficiency, and efforts made on margin increase. Operating expenses as a percentage of net revenues decreased 2.1% to 52.3%, compared to 54.4% of net revenues in the year-ago period. The decre...