Company Reports Record Sales and Operating Profits – Online Revenue Increases Over 66%
LAS VEGAS, NV, March 28, 2018 (GLOBE NEWSWIRE) -- Her Imports (OTCQB: HHER), a leading retailer of human hair extensions and related beauty products, today reported its financial results for the full year ended December 31, 2017. Revenue for the full year totaled $16.1 million with income from operations of $951,708.
Barry Hall, Chief Executive Officer of Her Imports, stated, “In 2017, our focus was on profitability while growing our revenues. The overall retail environment has seen a major shift in customer buying habits and we responded by taking a hard look at every retail location to determine its long-term viability. As a result, we closed 13 locations during the year. However, this downsizing was achieved at a minimal cost due to our unique business model.” Hall added, “Additionally, we revised our marketing strategy away from traditional media and focused on new, mobile device specific platforms. This change increased online revenues to 35% of overall revenue, up from 25% in 2016.”
2017 Business Highlights:
- Launched a new eCommerce Website.
- Entered into an exclusive agreement with OSIworks to market and sell its line of hair care and beauty products.
- Formed a new Board of Directors along with an Audit Committee, Compensation Committee and a Governance and Nominating Committee.
- Entered into an agreement for a $500,000 credit facility for financing the purchase of inventory.
Financial Highlights for the Full Year 2017:
- Revenue totaled $16.1 million for the full year 2017, as compared to $13.6 million, an increase of 18.4%. While revenues from studio sales only increased 2.6%, online revenues were up 66.8%.
- Gross margin was 46.4% for the full year 2017, as compared with 42.8% for the full year 2016. The increase in gross margins, year-over-year, reflects an increase in accessory sales with high margins along with lower unit hair product costs.
- Income from operations was $951,708 in 2017 versus a loss from operations of $697,205 for the full year 2016.
- Net income attributable to the Company was $924,779 for the full year of 2017, compared with net loss of $1.8 million, for the full year 2016. In 2016, the Company had a one-time loss of $1.3 million on the termination of an agreement.
About Her Imports:
Her Imports sells human hair extensions and related hair-care and beauty products at retail locations throughout the U.S. and on our Website, www.herimports.com. Additionally, by way of our proprietary ecommerce platform and strategic leveraging of social media buys, we convert prospects into customers while developing long-term personal relationships and loyal customers.
Forward Looking Statements:
This report contains forward-looking statements including our online revenue growth. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include ineffective marketing and competition. See the Risk Factors contained in the Form 10-K filed with the Securities and Exchange Commission on March 27, 2018.
Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.