On Tuesday, Scott’s Liquid Gold Inc (OTCMKTS:SLGD) was in the news after the company announced its financial results for the fiscal quarter that had ended on March 31, 2022.
Market Action
On Tuesday, SLGD stock slumped 11.11% to $0.80 with 16K shares, compared to its average volume of 9.5K shares. The stock moved within a range of $0.7600 – 0.9009 after opening trade at $0.86.
Earnings Recap
However, it was clear that investors were not particularly thrilled with the numbers as the Scott’s Liquid Gold stock went through a selloff and declined by as much as 8% for the day. In the first quarter, the net sales generated by the company generated net sales to the tune of $5.79 million and that was considerably lower than the $8.84 million in sales that had been generated in the prior year period.
In this context, it is also necessary to note that one of the major reasons behind the drop in sales was that the company had sold Dryel brand. In addition to that, supply chain issues also had a significant effect on the drop in sales figures.
For instance, the company’s Alpha Skin Care range of products suffered a decrease in sales owing to the lockdowns that had gone into effect in China. That, in turn, had a negative effect on Scott’s Liquid Gold’s ability to export its products in an effective manner.
Key Quote
“We are proud of our team for their efforts to help mitigate the volatile and challenging environment,” said Tisha Pedrazzini, President of Scott’s. “While inflation continues to impact operating costs and supply chain remains uncertain, we’ve launched new line extensions that we believe set the foundation to deliver on our future growth plans. We continue to focus on both sales growth initiatives and cost structure efficiencies to drive profit improvements in the short and long term.”
Traders Note
SLGD stock is trading below the 20-Day and 50-Day Moving averages of $0.9573 and $1.09 respectively. Moreover, the stock is trading is the oversold zone with RSI stands at 27.
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