With a blue ocean of opportunity still ahead of us, we are wrapping Q1 2018 having built a strong foundation in the past 18 months. Twenty-seven ideas that started out on paper are now branded Jane West products with established sell-through in hundreds of stores worldwide, earning a 54 percent average profit margin. And as we add sales channels and increase the volume of products sold, this number will only increase – especially with additional licensing contracts that provide over 90 percent profit margins. (Stay tuned for more on that next week!)
We have established strong sales traction and metrics continue to improve month over month. What follows is a snapshot of our growth...
Company Financial Highlights
Jane West, LLC has generated more than $90K in sales since operations began in April 2017. Specifically, it has earned:
$32.5K in royalty revenue
$58K in product revenue
The company has maintained a 51 percent gross profit margin on all cumulative sales channels including royalties, affiliate sales, and product sales since inception.
Total sales increased by 30 percent from Q4 2017 to Q1 2018.
Total gross profit margin grew from 21 percent to 45 percent from Q4 2017 to Q1 2018, a 111 percent increase.
Total product-related sales also increased 30 percent from Q4 2017 to Q1 2018.
Product-related gross profit margin increased to 41 percent in Q1 2018.
Discounts and returns on products remain under 4 percent for all sales.
Budgetary Assumptions and Forecasts:
The company anticipates $1M-plus in total sales in 2018.
Current inventory held is $125K.
At a minimum 50% margin, an additional $250K in sales is expected from turning the current inventory on hand within 90 to 120 days.
The company anticipates a 60 percent total gross profit margin or greater by the end of 2018 due to increased operating efficiencies, volume discounts, and expanding to more profitable retail sale channels.
It's thrilling to see that all the work we’ve done over the last year and half is paying off. We’ve built the foundation that is going to let us grow and provide more customers with the best possible experience. Thank you to the Republic community and to our investors – your support means everything.
(All numbers are the estimated solely by the company and have not been verified by an independent third party.)