Tourists Flock to Planet 13 Superstore in Las Vegas

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 reported revenues of $9.6 million and pro-forma revenues of $18.5 million, up 22% on the previous quarter. It recorded a Q1 net loss of $18.3 million, compared to $15.9 million in the prior quarter.

Curaleaf saw Q1 revenue shoot up 288% to $35.3 million, while its quarterly net loss amounted to $10.2 million. Green Thumb Industries saw 34% sequential growth to enjoy revenue of £28 million for the three-month period, while net loss widened from $3.3 million in Q4 2018 to $9.7 million.

Retailer MedMen announced a sequential increase of 22% to $36.6 million across its operations in California, Nevada, New York, Arizona and Illinois, with a net loss of $23.8 million. Cresco Labs saw Q1 revenue growth 313% year-on-year and 24% on the previous quarter, reaching $21.1 million, with a net loss of $7.6 million, compared to net income of $600,000 the previous quarter.

Zenabis Follows Industry Trend

Canadian cannabis producer Zenabis Global Inc.   reported revenue of C$11.6 million for Q1 2019 and a net loss of C$4 million. Zenabis was formed when Sun Pharm Investments Ltd. completed a reverse takeover of Bevo Agro Inc. in Jan. 2019 and commenced trading on the TSX Venture Exchange.

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.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live.

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