CCA Industries posts Q1 net loss, completes outsourcing move

EAST RUTHERFORD, N.J. — CCA Industries, whose portfolio includes Nutra Nail, Bikini Zone, Plus+White toothpaste and Scar zone scar treatment, posted a loss for the first quarter.

For the quarter ended Feb. 28, total revenues were  $7.75 million and it posted a net loss of $1.24 million. This compares with revenues of $11.80 million and the net loss $1.02 million in the year-ago period. Basic and fully diluted losses per share for the quarter were 18 cents compared a loss of 14 cents for the same quarter last year.

"We are moving rapidly to leverage our new association with the Emerson Group to help increase our brand distribution base. This largely reflects the power of scale the Emerson Group brings to our company by managing over $1.7 billion in annual consumer sales against a variety of niche consumer product brands very similar to ours with the retailers in all classes of trade," stated Richard Kornhauser, CEO and President. "Moreover, and concurrently with the outsourcing effort, we have taken significant action to drive consumers to the shelves to purchase our brands by redeploying much of the cost savings achieved into added media and new harder working advertising that moves product. We have already seen a very positive response to our efforts in March as our renewed and enhanced marketing efforts reinforce our brand connection to the consumer. While the accelerated shift to outsourcing — achieved 30-days quicker than originally anticipated — is highly beneficial and delivers substantial cost savings to us through the year — it did lead to some logistical early challenges that impeded our business results in the first quarter of 2014. These issues are principally corrected.  Importantly, we believe that the benefits of our efforts in totality will dramatically help drive brand awareness, enhance our distribution base, and improve in-store merchandising which we believe will prove highly positive starting in the second quarter and throughout fiscal 2014 and beyond.”

 

Login or Register to post a comment.