Business
Rocky Mountain Chocolate Factory Reports Fiscal Second Quarter 2024 Financial Results
- Company Continues to Execute Across its Three Strategic Pillars, Reveals Transformational Brand Refresh, and Anticipates Acceleration of eCommerce and
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"- Company Continues to Execute Across its Three Strategic Pillars, Reveals Transformational Brand Refresh, and Anticipates Acceleration of eCommerce and Specialty Retail Revenues for the Holidays - - Company to Host Conference Call Tomorrow at 8:30 a.m. ET - DURANGO, Colo., Oct. 11, 2023 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the “Company”, “we”, “RMC”, or “Rocky Mountain Chocolate”), an international franchisor and producer of premium chocolates and other confectionery products including gourmet caramel apples, is reporting financial and operating results for its second quarter ended August 31, 2023. The Company will host a conference call tomorrow at 8:30 a.m. Eastern time to discuss the results. “We continue to execute against the pillars of our Strategic Transformation Plan to establish Rocky Mountain Chocolate as America’s preferred premium chocolate company,” said Rob Sarlls, CEO of RMC. “The initiatives we have implemented this fiscal year are expected to generate material revenue growth in the quarters ahead as we enter the holiday season. During the fiscal second quarter, we removed several impediments that held back our eCommerce business and we are now fulfilling orders with trusted third-party service providers. These providers have favorable geographic locations that can reach consumers within 48 hours—a capability we lacked in Durango. We also eliminated customer shipping charges and have begun to utilize more effective ad spend. When coupled with purchase orders in-hand from our specialty retail partners, we expect the combination of eCommerce and specialty retail sales in fiscal 2H’24 to exceed the sales from these channels for all of fiscal 2023. “With respect to efficiency gains during the quarter, to ‘do more with less’ we reduced our driver fleet by 33% while maintaining consistent pound volume shipped from our Durango facility, which is a direct result of our logistic optimization efforts. We also calibrated our employee compensation structure to reduce turnover in the short-term and help establish a long-term foundation for accelerated product throughput. Notwithstanding recent increases in base pay for our processing team, we experienced a 16% reduction in labor salaries per pound produced versus fiscal Q1’24. “To ‘simplify and focus’ our operations, during the quarter we...