Company Successfully Navigates Supply Chain Obstacles
Fort Lauderdale, FL, Jan. 18, 2022 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the worldwide leader in consumer karaoke products today provided a summary of its critical holiday results. For the calendar year ended December 31, 2021, the Company shipped approximately $50 million in gross sales across all retail channels, representing approximately a $2 million (4.2%) increase when compared to the same 12-month period in 2020.
Highlights:
- Successfully navigated supply-chain obstacles to ship majority of holiday programs.
- Exceeded forecast to ship approximately $50 million in gross sales through the 9-month period ended December 31, 2021.
- Over 98% sell-thru rate on a Black Friday campaign with the nation’s largest retailer.
- Over 95% sell-thru rate on holiday programs with Costco and Sam’s Club.
- Over 90% sell-thru rate on the holiday commitment with Target.
The Company believes this was a highly successful achievement, as supply chain disruptions severely limited capacity for ocean cargo transportation and delayed the receipt of inventory as the port of Los Angeles and Long Beach faced historical backlogs. Despite the logistical challenges, the Company successfully managed to ship a majority of its holiday commitments to its retail partners.
Demand for home karaoke entertainment remained strong with the Company’s largest retail partners reporting strong sales numbers. As an example, the Walmart Annual Event experienced a 98% sell through rate while Costco and Sam’s Club achieved approximately a 95% sell through. Lastly, Target sold through 90% of its holiday forecast.
The Company continued to actively promote its higher-price point products, particularly with Costco and Sam’s Club. The Company invested heavily into its new WiFi Streaming Karaoke product which offers subscription-based, app-driven digital content library. This program delivered favorable test results in 2020 and repeated its success again in 2021, with a 20% increase in year-over-year sales. Developing a scalable installed user base within this product category is a critical component of the Company’s subscription based recurring revenue model.
“Our leadership team wishes to congratulate and recognize the entire global operations team across the Signing Machine corporate family,” commented Gary Atkinson, CEO of the Singing Machine. “Our logistics and sales teams had to overcome countless obstacles to ensure our products reached our retail partners in time for the holiday season, and they executed extremely well.”
“I am also pleased to recognize our sales team, as they have successfully secured new sales commitments for early calendar 2022. We look forward to providing a more comprehensive financial update regarding this development in the near future,” concluded Mr. Atkinson.
About The Singing Machine
Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2021. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
