ycbd_ex991
Exhibit 99.1
cbdMD Provides Preliminary Q2 Sales Results;
Company Withdraws Fiscal 2020 Financial Guidance Due To Covid-19
Pandemic
Charlotte, NC, April 6, 2020, cbdMD, Inc. (NYSE American: YCBD,
YCBD PR A), a leading cannabidiol (CBD) consumer brand, announced
today that its preliminary year over year sales for the second
quarter of fiscal 2020 ended March 31, 2020 grew 167% to
approximately $9.4 million from its second quarter fiscal 2019
quarterly sales of $5.64 million.
“We are pleased to report that in our quarter ending March
31, 2020, cbdMD generated sales of approximately $9.4 million which
was a 67% increase as compared to our same quarter last year. Our
online direct to consumer business continued to see strong traffic
with online sales eclipsing over 70% of all quarterly sales
activity. We expect that our online direct to consumer business
should remain relatively strong this next quarter amid the Covid-19
pandemic. Sequentially, sales dipped slightly below our prior first
quarter fiscal 2020 ended December 31, 2019 of $10.1 million, as
the company’s food drug mass market (“FDM”)/brick
and mortar business was affected by the Covid-19 pandemic. This was
our first sequential decline in sales since we began operating the
cbdMD brand. We expect our FDM/brick and mortar business to return
to normal operations once the pandemic subsides. With over $14.5
million in cash on hand at the end of March 2020, we are in a
strong financial position at this time. Regardless, the company has
taken all prudent steps to significantly reduce its expenditures
during the third fiscal quarter ending June 30, 2020, and because
of these reductions, we anticipate that our operating expenses will
be reduced by over $5 million for the third quarter, resulting in
an significant positive impact to our operating results for that
quarter. However, due to the uncertainty and fluidity of the
Covid-19 pandemic, previous assumptions we have made for fiscal
2020 may not be applicable any longer and cbdMD is withdrawing the
fiscal 2020 financial guidance provided on December 18, 2019. We
expect to provide more detailed analysis once we see some level of
stability in the current environment.”, said Martin
Sumichrast, Chairman and Co-CEO of cbdMD, Inc.
“The COVID-19 pandemic has impacted us all, and as always,
our first priority is for the health and safety of our employees,
clients and the communities in which we operate. We are
actively working with this focus and have instituted several
changes and we continue to operate our business and deliver cbdMD
products to our clients.” continued Mr.
Sumichrast.
About cbdMD, Inc.
cbdMD, Inc. is a nationally recognized consumer cannabidiol (CBD)
brand whose current products include CBD tinctures, CBD gummies,
CBD topicals, CBD bath bombs, and CBD pet products. cbdMD is also a
proud partner of Bellator MMA, Life Time, Inc., and Supercross, and
has one of the largest rosters of professional sports athletes who
are part of "Team cbdMD." To learn more about cbdMD and our
comprehensive line of over 100 SKUs of U.S. produced,
THC-free* CBD
products, please visit www.cbdmd.com,
follow cbdMD on Instagram and Facebook,
or visit one of the over 4,000 retail outlets that carry cbdMD
products.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The words "believe," "may," "estimate," "continue," "anticipate,"
"intend," "should," "plan," "could," "target," "potential," "is
likely," "will," "expect" and similar expressions, as they relate
to us, are intended to identify forward-looking statements. cbdMD,
Inc. has based these forward-looking statements largely on our
current expectations and projections about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy and financial
needs. Some or all of the results anticipated by these
forward-looking statements are unknown at this time, including the
ultimate impact of the Covid-19 pandemic on our results of
operations. Further information on cbdMD’s risk factors is
contained in Annual Report on Form 10-K for the year ended
September 30, 2019, as amended, and its other filings with the
Securities and Exchange Commission. Any forward-looking statement
made by us herein 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. cbdMD, Inc. undertakes 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. The information which appears on our websites and
our social media platforms, including, but not limited to,
Instagram and Facebook, is not part of this press
release.
Contacts
John Weston
Director of Investor Relations
john.weston@cbdmd.com
704-249-9515