XFit Brands Increases Quarterly Revenue 60.9%
- Revenue up 60.9% following greater than 40% growth in each of the past 3 years
- Gross Margin increased to 45.3% up 16 basis points on improved international sourcing
- Granted Ticker Symbol XFTB and began trading as a public company
LAKE FOREST, Calif., Nov. 19, 2015 /PRNewswire/ -- XFit Brands, Inc. (OTC: XFTB), a global supplier of fitness and MMA equipment sold at retail and fitness outlets worldwide whose brands include XFit Brands®, Throwdown®, and Transformations™, today announced fiscal first quarter financial results for the three month period ended September 30, 2015. Both US and International business segments contributed to growth equally, buoyed by a new exclusive supply arrangement with a major fitness franchise.
Management will conduct a live teleconference to discuss the financial results at 4:30 p.m. ET on Thursday. Interested investors can listen to the call and participate in a question and answer session by dialing into the conference line at 1-877-407-0778 (domestic) or 1-201-689-8565 (international).
XFit Brands posted net revenue increase of more than 60% in the quarter as compared to fiscal Q1 2015 on strong growth in the United States in the fitness/gym channel as well as excellent international growth in existing markets in both the fitness and retail channels. During the quarter in the US, the Company secured an exclusive supply agreement with a major national fitness chain to supply both its existing portfolio and its newly expanded functional fitness line of equipment and accessories. XFit Brands recently broadened its product offerings to provide a low-cost, one-stop-shop for major gym operators, and the strategy is gaining excellent traction and delivering immediate financial results.
The International business segment also strongly contributed to growth in the quarter. XFit expanded with existing partners in the Middle East, Australia and Japan, and experienced strong growth with new partners in South East Asia where fitness and MMA are increasing in popularity. The addition of XFit's new functional fitness portfolio had a positive Impact on the Company's gross margin, and also added an important additional recurring revenue stream to complement its existing hard goods and equipment business.
"This was a pivotal quarter for XFit, as it expanded its brand awareness around the world and accelerated its pace of growth," commented Dave Vautrin, Chief Executive Officer of XFIT Brands. "The Company also entered into a new chapter with the issuance of its trading symbol XFTB and the commencement of trading on the OTCQB exchange. To deliver this kind of operating performance, while doing all the activities to become publically traded was a tremendous amount of work and a great accomplishment. Our one-stop-shop strategy for major fitness operators is really working, and we believe we are one of the only competitors that can fully meet the needs of this important growing sector within the industry."
Total revenues for the three month period ended September 30, 2015 were $473,257, an increase of $179,106, or 60.9%, up from $294,151 for the three months ended September 30, 2014.
Gross profit increased $128,312, or 149.0% to $214,412 for the three months ended September 30, 2015, up from $86,100 for the three months ended September 30, 2014 as a result of increased product sales in all business segments. Latin American growth was negatively affected by the Brazilian economy but was more than offset by excellent growth in Asia Pacific.
Gross profit margin on product sales for the three months ended September 30, 2015 was 45.3%, an increase of 16 basis points versus prior year. The increase in gross margin can be attributed to improved materials sourcing and a shift in mix within the portfolio to higher margin products.
Operating loss for the three months ended September 30, 2015 was $320,412 compared to an operating loss of $274,276 for the three months ended September 30, 2014. The increase in operating loss in the third quarter of 2015 was primarily a result of increased general and administrative expenses associated with finalizing the public market listing, as well as increased sales and marketing investments.
For the three months ended September 30, 2015, net loss was $436,689, or $(0.11) per basic and diluted share, as compared to a net loss of $349,884, or $($0.09) per basic and diluted share for the three months ended September 30, 2014. http://www.otcmarkets.com/stock/XFTB/news?id=119637