Rocky Mountain Chocolate Factory, Inc. reports developments in its premium chocolate and confectionery retail franchise system, including financial results, conference calls, store openings, corporate-owned locations and area development agreements. The company manufactures chocolate candies and confectionery products such as clusters, caramels, creams, toffees, mints and truffles, and operates through franchising, manufacturing and retail store activities.
Recurring updates also cover its transformation and omnichannel growth initiatives, digital marketplace and catering access, store design and packaging refreshes, franchise rankings and balance-sheet actions.
Rocky Mountain Chocolate Factory reported significant operational challenges due to COVID-19, impacting revenue and sales metrics for the third quarter and nine months ended November 30, 2020. Total revenue fell 8.6% to $7.2 million year-over-year, with same-store product purchases declining 16.9%. Despite these declines, net income improved to $524,000 ($0.09 per share) compared to a loss of $72,000 in Q3 2019. However, total nine-month revenue dropped 35.7% to $15.3 million, reflecting a net loss of $3.1 million. The company attributed the downturn to reduced foot traffic and operations amid public health measures.
Rocky Mountain Chocolate Factory reported a 27.9% revenue decrease to $5.3 million for Q2 2020, down from $7.4 million in Q2 2019, primarily due to COVID-19 disruptions. Net income fell by 91.7% to $76,000, resulting in earnings of $0.01 per share. Factory sales dropped 21.9% as franchise operations were curtailed. Over the six months, total revenue decreased 49.2% to $8.0 million, with a net loss of $(3.6) million. The company faced challenges with reduced customer traffic and store closures amidst the pandemic.