Stocks Update: Unaudited Financial Results and Record First Quarter Reports – (2023-06-09)

Today’s blog post highlights some key financial updates from companies I currently have stocks in. We’ll be discussing the impressive quarterly results from NIO Inc., Concrete Pumping Holdings, The Lovesac Company, Stitch Fix, and Dave & Buster’s. So let’s dive straight into the details!

NIO, A Leader in the Premium Smart Electric Vehicle Market, Announces First Quarter Results

Shanghai-based automaker NIO recently released its unaudited financial results for the first quarter ended March 31, 2023. The company delivered a total of 31,041 vehicles in Q1 2023, consisting of 10,430 premium smart electric SUVs and 20,611 premium smart electric sedans. This represents an increase of 20.5% from the first quarter of 2022 and a decrease of 22.5% from the fourth quarter of 2022.

In terms of financial highlights, NIO’s vehicle sales were RMB9,224.5 million (US$1,343.2 million) in Q1 2023, which is a decrease of 0.2% from the same quarter in 2022 and a decrease of 37.5% from Q4 of 2022. Total revenues for the quarter reached RMB10,676.5 million (US$1,554.6 million), showing an increase of 7.7% from Q1 2022 and a decrease of 33.5% from Q4 2022.

While gross profit was RMB162.3 million (US$23.6 million) in the first quarter of 2023, representing a decrease of 88.8% from the same quarter in 2022 and a decrease of 73.9% from Q4 2022, the gross margin was at 1.5% compared with 14.6% in 2022 Q1and 3.9% in 2022 Q4. Ultimately, the current loss from operations was RMB5,111.8 million (US$744.3 million) for the quarter, which is an increase of 133.6% from the same quarter in 2022.

As a long-term investor in NIO, I am not concerned about this short-term decrease in profit margin. This is because the electric vehicle industry is still in its nascent stages and is poised for long-term growth. NIO is not only a market leader in China with high-quality products, but it also has a strong brand with a loyal and growing customer base. The drop in deliveries and sales can be attributed to global supply chain disruptions, and I believe that the company’s long-term prospects remain strong, given its forward-looking strategy and product roadmap.

These results indicate that NIO is still investing heavily in production capacity, R&D, and building out the company’s overall infrastructure. This investment is necessary for the company to attain and maintain its competitive advantage in the market. As China’s government continues to prioritize electric vehicles’ growth as part of its environmental policies, I recommend holding onto NIO stock with the expectation of market growth and positive future results.

Concrete Pumping Holdings, Inc. Reports Strong Q2 Fiscal Year 2023 Results

Concrete Pumping Holdings, Inc. (Nasdaq: BBCP), a major provider of concrete pumping and waste management services in the U.S. and U.K., released Q2 Fiscal Year 2023 results, with a revenue increase of 12% amounting to $107.8 million compared to $96.5 million in the same quarter the previous year. The gross profit for the quarter also increased 12% to $43.5 million from $38.9 million, and income from operations surged by 27% from $10.4 million to $13.2 million. Adjusted EBITDA rose by 7% to $28.8 million compared to $27.1 million in 2022. However, due to higher costs, net income was $5.6 million compared to $6.0 million, with net income attributable to common shareholders listed at $5.2 million, or $0.09 per diluted share, in contrast to $5.6 million or $0.10 per diluted share in 2022.

CPH CEO Bruce Young stated that the quarter was successful, with double-digit growth in both segments, particularly in the U.K. and Eco-Pan, which experienced a 26% increase in revenue, according to the press release. In the U.S., the company’s commercial and infrastructure projects experienced increased utilization, although equipment utilization declined in regions west of the Rockies as well as Colorado due to cold temperatures and above average rainfall.

Overall, Concrete Pumping Holdings appears to have a solid quarter, with significant growth in both its U.S. and U.K. segments, as well as its Eco-Pan projects, indicating strong potential for the company. As a result, I recommend purchasing the stock.

LoveSac Company Reports Impressive Q1 Fiscal 2024 Results

LoveSac Company, known for its versatile and adaptable Sactionals couch, announced its Q1 Fiscal 2024 results, recording a staggering 9.1% increase in net sales and a comparable sales growth of 15.1%. Despite weak macro-economic conditions, LoveSac managed to significantly outperform its contemporaries, thanks to its customer-centric business model and robust operational platform.

CEO of LoveSac, Shawn Nelson, announced that an accelerated pace of new product innovation will drive further customer uptake. LoveSac’s customer retention rate has been high due to its Designed For Life product platforms and the company’s balance sheet, which is free from debt. However, it expects challenging macro-economic conditions to continue in subsequent quarters.

As an investor, I would recommend Buying LoveSac (Nasdaq: LOVE) Stock as the company is focusing on product innovation to drive customer enthusiasm, and its debt-free balance sheet gives them a strong foundation to make necessary investments. Moreover, the company has a proven track record of cost discipline and rigor. Overall, LoveSac’s Q1 Fiscal 2024 results suggest that the company is well-positioned to deliver long-term shareholder value.

Stitch Fix Announces 3Q Fiscal Year 2023 Financial Results

Stitch Fix, Inc. (NASDAQ:SFIX) has announced its financial results for the third quarter of fiscal year 2023, which ended on April 29, 2023. As the trusted online personal stylist, Stitch Fix’s mission is to help clients look and feel their best by providing personalized apparel and styling services.

Stitch Fix Interim CEO Katrina Lake stated that the company has focused on delivering profitability and preserving cash flow, which has resulted in Q3 results exceeding expectations. Despite a decrease in net revenue by 20% YoY, the company was able to maintain tight cost controls, leading to an adjusted EBITDA of $10.1 million, which exceeded the guidance range. The company’s net revenue per active client (RPAC) saw a decrease of 9% YoY, but the current active clients at 3,476,000 reflects an 11% decrease YoY. Stitch Fix also produced positive free cash flow, generating $21.9 million by the end of the quarter, ending with $244 million of cash and investments and no bank debt.

Stitch Fix continues to invest in the core capabilities that sets them apart from the rest – personalization powered by industry-leading data science and AI. The company is confident in its strategy to return to profitable growth despite the challenges faced during this quarter.

As a shareholder of Stitch Fix, I believe that the company’s focus on driving efficiencies across the business while investing in core capabilities will help the company achieve its goal of profitable growth. The decline in RPAC and active clients does raise some concerns, but with the strategic business review, I am optimistic that further opportunities for improvement may be identified. I recommend holding on to the stock and keeping a watchful eye on the company’s next steps.

Dave & Buster’s Q1 2023 Results Show Record Revenue Growth

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) has announced its financial results for Q1 2023, and the numbers are impressive. The entertainment and dining venue operator posted record revenue of $597.3 million in the quarter, an increase of 32.4% from the first quarter of 2022. The net income for the company was $70.1 million, or $1.45 per diluted share, compared to $67.0 million, or $1.35 per diluted share in Q1 2022. The company’s adjusted EBITDA was $182.1 million, an increase of 29.8% year-over-year.

Dave & Buster’s saw good growth in comparable-store sales, with an increase of 10.3% compared with the same period in 2019. However, pro forma combined comparable-store sales (including Main Event branded stores) decreased by 4.1% compared with the same period in 2022.

The company has also purchased over five million shares, totaling $200.0 million, representing 11.8% of outstanding shares for fiscal 2023. With $581.7 million of liquidity at the end of the quarter, Dave & Buster’s is in a strong financial position.

The company has expanded its reach by opening a new store in Puerto Rico and three new Main Event stores across the country. Additionally, it has signed two international franchise agreements for up to 15 stores in India and up to five stores in Australia.

Overall, Dave & Buster’s is well-positioned for the future with a strong financial position, a growing presence, and impressive revenue growth. I recommend holding onto this stock as it continues to show positive momentum.