Naples Soap Company Reports Second Quarter Results

Naples Soap Company, Inc (OTC PINK: NASO), a health and wellness brand that offers high-quality skin and hair care products, today reported second quarter financial results for the period ending June 30, 2022.

• Total sales for the three months ended June 30, 2022 were approximately $2.85 million compared to approximately $2.79 million for the three months ended June 30, 2021, a 2% increase. Total sales for the six months ended June 30, 2022 were approximately $5.77 million compared to approximately $5.26 million for the six months ended June 30, 2021, a 10% increase.
• Store sales for the six months ended June 30, 2022 have increased 17%, compared to the six months ended June 30, 2021.
• Gross profit for the six months ended June 30, 2022 was approximately $4.18 million compared to $4.00 million for the six months ended June 30, 2021, a 4% increase.
• Operating expenses for the three months ended June 30, 2022, increased approximately $553 thousand, or 32%, compared to the three months ended June 30, 2021. The increase was primarily driven by the following:
  • The Company opened a new retail store in March of 2022 in Kissimmee, Fla., and the new store expenses for the three months ended June 30, 2022 were $131 thousand.
  • The Company is relocating to a new warehouse space with new administrative offices in September of 2022 and is currently incurring expenses for both the current and new facilities. The expenses associated with both facilities were $117 thousand for the three months ended June 30, 2022. The Company has added additional warehouse and administrative personnel in anticipation of growth and new store openings. The additional personnel costs for the three-month period ended June 30, 2022 were $141 thousand.
• Net income for the six months ended June 30, 2022 was approximately $318 thousand compared to $676 thousand for the six months ended June 30, 2021, a 53% decrease.
• The Company is currently experiencing an increase in costs for several expense categories and in cost of goods sold, as a result of macroeconomic challenges, including inflationary and supply-chain pressures that are impacting consumer confidence, spending patterns and margins. The Company is looking at a number of initiatives, including cutting expenses and leaner inventories.

"We are really looking forward to moving into our new warehouse space in September prior to the busy holiday season. We've been busting at the seams for the past few years, so this will allow us to add some efficiencies to the way we store our products, replenish store inventories, and fulfill our e-commerce orders," said Deanna Wallin, Founder and CEO of Naples Soap Company. She went on to say, "Labor and shipping costs remain a challenge not just for us but for most retailers. We have been working with our manufacturers to try to offset price increases and are bringing on some new vendor relationships with fresh products at attractive price points. We continue to keep a watchful eye on expenses while still being innovative. The decisions we've made in the second and third quarters will have us prepared for the upcoming holiday shopping season."

About Naples Soap Company

Founded in 2009 by Deanna Wallin, Naples Soap Company is a producer of more than 300 bath, body and personal care products that are made in the USA. Products are sold at the Company's 10 retail locations in Florida. Naples Soap Company products are sold online from the Company's website at www.naplessoap.com, through other DTC (direct-to-consumer) channels such as Amazon.com and in more than 300 boutiques, spas and stores throughout the United States via the Company's wholesale division. For more information about Naples Soap Company, visit www.naplessoap.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are subject to uncertainty and may not come to fruition. Readers are cautioned not to place undue reliance on any forward-looking statement including statements that list numbers and dates.