The Planet 13 Superstore in Las Vegas is now generating more than $5 million per month in revenue due to a spike in daily visitor numbers.
More than 3,000 people now visit the retail and entertainment complex each day and 70% of them are from out of state. Revenue rose to $4.3 million in February and it exceeded $5 million in March and April as visitor numbers continue to increase.
“We fully expect to generate additional growth at the Superstore as we continue to execute awareness initiatives and complete Phase II of our expansion plan, which is designed to generate strong traffic and incremental, high-margin revenue,” said Larry Scheffler, co-chief executive at Planet 13 Holdings
He is pleased to see so many tourists visiting the store and believes it will provide a strong launchpad for the firm as it plots out-of-state expansion.
Its strong performance helped Planet 13 increase year-on-year revenues by 286% to hit $13.8 million in Q1 2019. It swung to a net loss of $1.2 million, compared to a net profit of $12,741 in Q1 2018.
It had $20.2 million in cash on Mar. 31, 2019, up from $19.4 on Dec. 31, 2018.
During the quarter it teamed up with former heavyweight champion and Las Vegas mainstay Mike Tyson to launch Tyson Ranch at the store. It has since released a number of new SKUs as part of its vertically integrated strategy.
The firm’s new production facility should be completed in Q3, allowing it to increase sales of its three brands: Medizin, Trendi, and Leaf & Vine. It is also launching a fourth brand called Planet M and it hopes to wholesale these products across the country.
A Barrage of Q1 Results
A raft of companies within the burgeoning marijuana sector have delivered Q1 financials during the past couple of days. There is a common theme: like Planet 13, they are all reporting double or triple-digit revenue increases off a small base, while none are profitable right now as the nascent industry is finding its feet and ambitious firms are busy expanding.
U.S. multi-state operator iAnthus
Zenabis Follows Industry Trend
Canadian cannabis producer Zenabis Global Inc.
It secured supply arrangements with the provinces of Alberta, Manitoba, Quebec, and Prince Edward Island and it now sells its wares in eight provinces and one territory. It has just graduated to the TSE and doubled its licensed production capacity to 13,400 kg.
Sunniva, Harvest Health & Recreation, Cansortium, Indus Holdings, and Green Growth Brands are among the other marijuana companies to report soaring Q1 revenues and net losses.
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