CCA Industries announced its results for the third quarter ended August 31, 2023.
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Net loss was $452,394 for the three months ended August 31, 2023, as compared to a net loss of $114,047 for the three months ended August 31, 2022.
Christopher Dominello, Chief Executive Officer commented, "2023 has really been a transitional year for CCA as we shift the business model from a 100% "brick and mortar" to a hybrid of both "brick and mortar" and online (primarily Amazon).
"Many of the challenges we have faced in 2023 originated with the loss of distribution in 2022 and that is why we have focused on growing our Amazon business where we have more control over our own destiny.
"As noted in our last press release, the internet-based sales in the first nine months of 2023 have seen an increase of over 42%. We have also been investment spending on Amazon as we build subscriptions and new to brand customers that will drive the business moving forward.
"This year we have also faced challenges in the third quarter with a contract manufacturer which resulted in the Company having unfulfilled orders of approximately $300,000 for our retail business, plus additional unfulfilled orders for our online sales through Amazon.
"We have taken substantial measures to ensure that we do not find ourselves in that position again.
"Now that the sale of the Bikini Zone brand closed at the end of September 2023, the Company is stable financially with sufficient working capital to carry out our plans for fiscal 2024.
"We will continue with the success we have had with digital advertising through social media and online sites.
"While still working on the continued expansion of our Amazon online business, we are focusing on our brands that have high gross margins that can bring profitability to our business. While it has been a bit of a rocky road to get to this point, we believe that our business strategies will result in bringing the Company back to sustainable profitability." ■