Fire & Flower reports consolidated revenue of $40.7 million in the second quarter of 2022 ending July 30, 2022. Revenue is consistent with the previous quarter but represents a decrease of 6% compared to the same quarter of last year. Retail revenue declined 5% from $31.8 M to $30.4 M during that period.
The chain saw a net loss of $21.6 M for Q2, compared to a net profit of $19.5 M in the prior year comparative period and saw nine retail stores close during that quarter. As of July 30, Fire & Flower operated 92 stores compared to 101 on April 30, 2022.
The launch of its loyalty program Spark Perks™ Member Pricing program in mid-May 2022, drove an 18% increase of average annualized sales per store in Q2 2022, compared to Q1 2022, and resulted in a same store sales increase of 10% in the month of July 2022. Fire & Flower expects that trend to continue in the next quarter.
Firebird Delivery™ also launched in seven Ontario cities (Toronto, Kingston, London, Ottawa, Oshawa, Guelph, North Bay) providing same-day delivery and a new “Rush Delivery” option for estimated delivery within one hour.
Stéphane Trudel, Chief Executive Officer of Fire & Flower, says, “Fire & Flower remains focused on the transformation of our business and strategic opportunities with a goal to deliver positive Adjusted EBITDA and Free Cash Flow. We are focusing on near-term initiatives such as the Spark Perks Member Pricing program and opportunities to generate additional consolidated gross profit dollars as competitive pressures, and license expansion outpacing market growth create challenging market conditions across the industry. Our Member Pricing program has generated success by getting customers back in our stores and we will look to maximize the margin opportunities from all programs focused on driving gross profit dollars.”