CCA Industries posts Q2 results, discontinues Gel Perfect brand

EAST RUTHERFORD, N.J. — CCA Industries, whose brands include Plus+White toothpastes and teeth whiteners, Nutra Nail nail care treatments and Scar Zone scar treatment, widened its net loss during second quarter 2014, and has pulled the plug on its Gel Perfect brand.

"The ugly performance in the first half of 2014 traces directly to the Gel Perfect color nail polish and the company's dietary supplement brand that has heavily weighed down the overall performance for the past 24 plus months. The company has discontinued the Gel Perfect brand as of the end of the second quarter, which is reflected on the company's consolidated statement of operations. Efforts are underway to mitigate the dietary supplement brand's future impact on the business,” stated Richard Kornhauser, CEO and president of CCA Industries.

Kornhauser added that, "The company's core brands, principally, Plus White, Sudden Change, Bikini Zone and Nutra Nail Treatments reaffirms the company's confidence that the restructuring effort and turnaround is on track.”

Net sales for all brands, other than the Gel Perfect and dietary supplement brands, during the second quarter totaled $10.56 million as compared to $8.67 million the same period in fiscal 2013, an increase of 21.7%, he stated.

“This is a result of very positive consumer response to our new brand advertising campaign (media and creative) with consumer sales up significantly for the second quarter versus the same period last year for the Plus White, Sudden Change and Bikini Zone brands.  In our judgment, the results show that we continue to have products that meet consumer needs, respond to smart marketing and advertising efforts and, importantly, can deliver long-term shareholder value. These are the brands that we believe will drive our company's performance forward in a highly positive manner,” Kornhauser stated.

Net revenues during the quarter ended May 31 totaled $8.77 million compared with $10.68 million in the year-ago period.

The net loss widened to $4.14 million compared with a net loss of $156,836 in the year-ago period.
 

Login or Register to post a comment.