On January 7, Planet 13 Holdings (PLNHF) announced that it had served 1,430 customers per day in December and that its average ticket size had been better than expected.
The company’s management has credited the success of its recently launched TRENDI brand for its sales growth in December.
TRENDI, which launched on November 12, 2018, has been resonating well with customers. The company has sold ~5,000 units of TRENDI, which represents a rise of 260% from ~1,700 units in November. TRENDI comes in three product types, which include disposable vapes and concentrates. In December, TRENDI generated 5% of Planet 13’s total revenue.
Speaking about Planet 13’s December sales, Bob Groesbeck, Planet 13’s co-CEO, said, “We are very pleased with the trajectory of customer traffic and average ticket at the Superstore, having increased our December revenue and customer counts over November in what is always a seasonally slow period for Las Vegas convention and visitor traffic. With the Consumer Electronics Show kicking off a historically strong period on January 8th and our marketing efforts continuing to ramp-up, we expect to continue growing the number of customers served per day and amount of revenue generated.”
The announcement appears to have increased investors’ confidence, as Planet 13 stock rose 2.8% on January 7. YTD (year-to-date), the stock has returned 6.4%. Its peers Acreage Holdings (ACRGF), MedMen Enterprises (MMNFF), and Curaleaf Holdings (CURLF) have returned 27.5%, 20.6%, and 22.1%, respectively, during the same period. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 10.5% YTD.