CLS Holdings USA Inc. (OTCMKST:CLSH) has announced the operational and financial results of its wholly-owned Nevada subsidiaries for November 2020 in which net revenue was $1.5 million and gross margin was 54.3%.
CLS subsidiaries in Nevada grew revenue 38.9% YoY in November
The results show that CLS will have a strong Q4 2020 in light of increased restrictions in communities where CLS operates and the difficult economic conditions that Nevada currently faces. In November net revenue was up 38.9% YoY with gross margin also increasing by 8.1% YoY. The results reflect a 112% net revenue increase compared to November 2018. Most importantly the company saw Oasis Cannabis’s average order size increase by $47.1% to $54.93 compared to last year’s $37.35. On Black Friday Oasis Cannabis single day sales increased 27% YoY. Notably, City Trees, the company’s wholesale division released a limited edition concentrate product with State Flower which is a popular regional cultivator.
Although tourism in Nevada is still stifled, City Trees and Oasis Cannabis have continued to focus their efforts to cater to the local community. They have been providing substantial promotional pricing in response to the local community’s challenging economic conditions. The company’s retail sales total in November were high and they reached $50,487 on Black Friday alone.
Andrew Glashow, the company’s COO, and President said that the achievements in November were possible due to the great work and dedication of all members of the CLS team. Glashow said that in November the company operated one day less to let its employees enjoy thanksgiving with their families.
CLS outpaced industry revenue growth in Nevada in October
According to industry analysts at BDS Analytics, October 2020 net revenues at dispensaries in Nevada were up 32% YoY. The company significantly outpaced industry growth statewide by growing its subsidiaries’ revenue by more than 74%. Equally statewide trends show that there was a 27% increase in the concentrate category and this growth is welcome news as CLS strategically expands the extraction and branded extraction segment.