Kaspien (KSPN) Misses Q1 EPS by 2c, Revenues Beat

June 10, 2021 4:09 PM EDT
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Price: $24.27 -4.79%

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Kaspien (NASDAQ: KSPN) reported Q1 EPS of ($0.61), $0.02 worse than the analyst estimate of ($0.59). Revenue for the quarter came in at $40.62 million versus the consensus estimate of $35.38 million.

Recent Operational Highlights

  • Raised approximately $13.5 million, prior to deducting underwriting discounts and commissions and estimated offering expenses, in an underwritten offering of 416,600 shares of common stock of the Company at a price to the public of $32.50 per share. The Company intends to use the proceeds from the offering for general corporate purposes, including working capital to implement its strategic plans focused on brand acquisition, investments in technology to enhance its scalable platform and its core retail business.
  • Obtained approval to sell on Target.com through invite-only Target+ Program. As a Target+ partner, Kaspien is one of a few hand selected third-party merchants currently approved to sell on Target.com. Nearly 20 brands to-date have already applied to Kaspien’s waitlist for the Target marketplace.
  • Launched pilot omnichannel partnership with international grocery brand Kroger; conducted initial testing beginning in the fiscal second quarter.
  • Doubled subscription team headcount over the last quarter to support continued growth efforts.
  • Expanded pipeline of potential brand acquisitions, including many existing Kaspien customers.

Management Commentary“In the fiscal first quarter, we carried our strong operating momentum from the end of the year and improved in nearly every meaningful financial metric and KPI,” said Kaspien CEO Kunal Chopra. “Our retail business produced a healthy, double-digit revenue increase, and we drove major growth in our subscriptions segment. GMV saw a nearly 50% increase, with a greater than 100% increase in subscription GMV; the subscriptions segment now contributes over 32% of total GMV, further supporting our diversified approach to scale. While we’ve consistently grown our top line over the past several quarters, we’ve also significantly decreased SG&A costs as a percentage of net revenue, meaning we have been able to improve performance while also adding efficiency as we scale.

“Operationally, we have several major initiatives at work, including new product launches, sales and marketing programs, partnerships, marketplace thought leadership work, and a new brand acquisition strategy. Within our own customer base, we have identified several promising leads, which will provide us with a built-in opportunity to drive incremental value. As the global economy slowly re-opens, we are witnessing an extended strain placed on the online sales industry, which has led to supply chain challenges and other temporary impediments driven by outsized demand. While we work through these near-term interruptions, Kaspien remains well-positioned to capitalize on the continued global acceleration of e-commerce adoption and expanding market opportunities over the long-term.”

For earnings history and earnings-related data on Kaspien (KSPN) click here.

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