In a press release issued yesterday, Polished.com Inc, an online consumer goods retailer, disclosed its financial results for the third quarter (Q3) ended September 30, 2023, revealing a significant downturn in its stock value. The company, which closed Monday’s trading session at $2.03, witnessed a sharp drop in its stock price as it commenced trading on Tuesday morning at $1.80 and currently hovers at $1.46.
At the time of this publication, Polished.Com Inc stock (POL) has witnessed a decline.
Polished.Com Inc
Current Price: $1.46
Change : -0.57
Change (%): (-28.28%)
Volume: 96.4K
Source: Tomorrow Events Market Data
Polished.com Inc Q3 2023 Financial Results
During the third quarter of 2023, Polished.com Inc, faced a challenging economic landscape, with net product sales plummeting to $77.8 million, a notable decrease from the $143.6 million recorded in the same period the previous year. The gross profit for the quarter amounted to $15.3 million, reflecting a margin of 19.7%, compared to the prior year’s $21.1 million at a 14.7% margin.
The company reported a net loss of $6.6 million for the quarter, translating to $3.14 per diluted common share. This marks an increase in net loss compared to the same period last year, which recorded a net loss of $5.2 million, or $2.46 per diluted common share. Adjusted EBITDA for the quarter stood at ($0.8) million.
Rick Bunka, the Chief Executive Officer of Polished.com Inc, addressed the financial challenges, stating, “While we continue to experience headwinds from consumer spending and housing, our focus remains on delivering stable margins and operating expenses.”
Bunka attributed the decline in net sales in luxury and mass appliance categories to ongoing challenges in consumer spending. However, he highlighted improvements in gross profit margins compared to the prior year, citing enhanced sourcing and distribution initiatives. Bunka also emphasized the company’s intensified direct-to-consumer marketing efforts and the ongoing rollout of consumer financing options.
“As we look to the remainder of 2023, we have several strategic levers we are utilizing to build a foundation for stronger profitability and sustainable cash flow generation in 2024,” Bunka added.
Loan Agreement Amendment and Future Outlook
Polished.com Inc has taken measures to address its financial situation by securing an amendment to its May 2022 credit agreement, extending the maturity date from August 31, 2024, to November 30, 2024. The company is actively working with an independent financial advisor to explore options for replacing the loan, aiming to maintain optimal flexibility and liquidity.
Further details about the Amended Credit Agreement can be found in the Company’s Form 10-Q for the period ended September 30, 2023, filed with the U.S. Securities and Exchange Commission (SEC).
Guidance for 2023 and Beyond
Due to sustained pressure on top-line revenue resulting from macroeconomic headwinds impacting consumer discretionary spending, Polished.com Inc expects net sales to range between $330 million and $350 million for 2023. The company anticipates low-single-digit EBITDA margins for the same period.
These projections, announced on November 20, 2023, come with a caveat, as they remain subject to substantial uncertainty. Various factors, including economic conditions, inflation, interest rates, regional labor markets, and supply chain constraints, may materially affect the company’s results, making them unpredictable. Polished.com Inc acknowledges the inherent challenges and uncertainties in the current economic environment and continues to navigate its path forward with a focus on resilience and adaptability.
