Direct-to-consumer sales buoy Charlotte’s Web revenues amid retail declines

BOULDER — Hemp and CBD product maker Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) saw in-store revenues fall in the second quarter of 2020, but those drops were partially offset by increased direct-to-consumer sales.  All told, the firm posted $21.6 million in sales for the last period, down from $25 million in the second quarter of 2019. Retail sales fell 54.5% in Q2 2020, a result the company attributes to COVID-19-related foot traffic decreases and store closures.  Direct-to-consumer revenues increased 33.6% year over year in the last period.  “Second quarter revenue was below expectations due to the impact of COVID-19 on retail sales,” Charlotte’s Web CEO Deanie Elsner said in a prepared statement.  A highlight of Q2 was the June acquisition of Canadian hemp topicals maker Abacus Health Products Inc., a deal valued at about $68 million. “We made excellent progress building out our infrastructure and expanding our products portfolio with the closing of the Abacus acquisition,” Elsner said.   © 2020 BizWest Media LLC
Source: BizWest