Net Revenue Grew 16.9% to $36,293,780
Normalized Net Income1 of $1,174,010, up from a Normalized Net Loss2 ($1,105,346)
Normalized Diluted EPS3 improved from ($0.070) to $0.055.
VISTA, CA / ACCESSWIRE / November 12, 2024 / Thirty Three Threads, Inc., a global leader in premium athletic products under the brands ToeSox®, TAVI®, Vooray®, and Base33®, announced today fiscal 2024 results, with growth in revenue, global distribution expansion, e-commerce gains, and improved operational efficiency. After two consecutive years of improvements in financial performance, Thirty Three Threads continued to build on this progress in fiscal 2024, returning to profitability.
"We are incredibly proud of how far Thirty Three Threads has come in recent years," said Barry Buchholtz, CEO of Thirty Three Threads. "Our journey from challenging periods to a position of stability and growth is a testament to the dedication of our team, strength of our brands, and demand for our products. We are building on this momentum and excited about our continued growth and performance improvements."
Fiscal 2024 Income Statement Highlights
Net Revenue: Total net revenue grew 16.9% to $36,293,780, reflecting increased demand across markets:
Domestic Sales: Revenue from domestic wholesale rose 16%, now representing 72% of total revenue. This was through expanding sales team presence in fitness studios and retail locations.
International: International sales grew 4%, now making up 12% of overall revenue. Recent distribution improvements are expected to accelerate future growth.
E-commerce: E-commerce sales, which include direct-to-consumer and Amazon channels, rose 47%, now accounting for 16% of total revenue.
Normalized Net Income: Normalized Net Income increased 206% from the prior year to $1,174,010, making fiscal 2024 the most profitable year since inception.
Strategic and Operational Highlights
Distribution Expansion: This year, we introduced new product lines and collections, expanding our reach and strengthening existing relationships with partners. This has not only allowed us to open new accounts but also to build partnerships with new international distributors, broadening our presence and enabling us to serve more customers worldwide.
Marketing Initiatives: Our focus on digital transformation and brand visibility has led to significant enhancements in our marketing approach. Through targeted digital strategies, paid campaigns, influencer partnerships, and brand storytelling across online and retail channels, we have increased engagement and awareness of our brand. This multi-channel approach has brought us closer to our customers and set the foundation for future growth.
Customer Loyalty: Our efforts to increase brand visibility and engage directly with customers have strengthened repeat sales and loyalty. By nurturing these relationships, we have seen a boost in customer retention and a rise in our overall brand loyalty. Our customers remain at the center of everything we do, and we are committed to further enhancing their experience with us.
Technology and Efficiency: Investments in technology and operational efficiency have been key to improving customer service and overall business effectiveness. By leveraging advanced reporting and technological tools, we have streamlined operations and gained valuable insights that allow us to respond quickly to market demands, ultimately creating a more efficient and resilient business.
Note: For more detailed financial information please see our Annual Report for the fiscal year ending 6/30/2024 here and prior year financials available on our website at thirtythreethreads.com.
Fiscal 2025 Outlook:
As we enter Fiscal 2025, we are excited to continue executing our global growth strategy. Our efforts are focused on strengthening our market position and expanding our reach, supported by strategic investments and an unwavering commitment to operational efficiency.
For the upcoming fiscal year, we are forecasting continued growth in both revenue and profitability.
Specifically:
Revenue Growth: We anticipate an increase of 10% to 15%, which translates to a projected revenue range of $40 million to $41.7 million. This growth reflects our confidence in expanding our product portfolio and distribution channels to reach more customers worldwide.
EBITDA Growth: We expect EBITDA to grow by 20% to 25%, resulting in a projected range of $1.23 million to $1.28 million. This increase demonstrates our dedication to driving profitability while maintaining disciplined expense management and operational efficiency.
Our strategic focus and commitment to value creation for our customers and shareholders will guide us in Fiscal 2025, and we look forward to delivering on these projections. Thank you for your continued support and trust in our vision.
About Thirty Three Threads
Thirty Three Threads was born on the 33rd parallel. It embodies the spirit of the active lifestyle integral to San Diego, our home, and it is here that our story unfolds. Our brands-ToeSox, TAVI, Vooray, and Base33-all reflect this synergy, each with its unique personality. We define new trends in the studio and beyond, driven by our customers' desire to continually enhance their practice. We innovate and create high-performance, enduring quality products that enable them to lead the active lifestyle they choose with the style they love. Visit www.33threads.com to learn more.
Forward Looking Statements
All disclosures and risk factors are listed in our annual report, which is available on our corporate website or at SEC.GOV shall apply to this shareholder update. This update contains "forward-looking statements" that involve risks and uncertainties, as well as assumptions that, if they prove incorrect or never materialize, could cause the execution of our plans or their results to differ materially from those expressed or implied by such forward-looking statements.
Such forward-looking statements include but are not limited to statements regarding:
Expectation of development of our brands,
Development or growth of our business or operations,
Future product offerings,
Resolution of claims against us,
Statements regarding our vendors, manufacturers, distributors or customers,
Our financial expectations, including budget, revenues, earnings, and balance sheet items,
Our forecast and/or budget and any information or projections contained therein,
Our use of proceeds, including investment of cash pending use of proceedings,
Our working capital,
Statements related to future economic conditions or performance,
Statements as to industry trends, governmental regulation and litigation, and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing.
These statements are often identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "will," or "plan," and similar expressions or variations. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Furthermore, such forward-looking statements speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after this press release.
CONTACT:
Erica Gravalec
Investorrelations@33threads.com
SOURCE: 33 Threads
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