Schwazze Records 8% Revenue Growth In Q4 2023 Amid Competitive Cannabis Retail Landscape (CORRECTED)
Portfolio Pulse from Maureen Meehan
Schwazze (OTC:SHWZ) reported a revenue increase of 8% in Q4 2023 to $43.3 million, despite a challenging competitive landscape in the cannabis retail sector, particularly in Colorado and New Mexico. The company expanded its store footprint by over 50% to 63 dispensaries. However, gross profit dropped significantly to $7.0 million from $21.7 million in the same quarter last year, leading to a net loss of $33.9 million. The company attributes the fierce competition and market pressures for the financial outcomes but remains optimistic about future growth and regulatory momentum.
March 28, 2024 | 3:42 pm
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Schwazze reported an 8% revenue increase in Q4 2023 but faced a significant drop in gross profit and a net loss of $33.9 million due to fierce competition in the cannabis retail sector.
The reported increase in revenue for Schwazze is overshadowed by a significant drop in gross profit and a larger net loss compared to the previous year. This indicates that despite growing sales, the company is facing challenges in maintaining profitability amidst fierce competition, particularly in Colorado and New Mexico. This situation is likely to concern investors and could lead to a negative short-term impact on the stock price.
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