Laird: ‘Eye-Popping’ Ecommerce Growth Leads Q2 Earnings
Laird Superfood showed “tremendous progress” in Q2 on the road to positive net earnings by focusing on DTC and ecommerce growth.
The functional food and beverage company reported net sales of $10 million compared to $7.7 in Q2 2023. Net loss fell from -$1.3 million versus -$7.7 million in the prior year period.
“The numbers speak for themselves,” Laird CEO Jason Vieth said on the earnings call. “The Laird Superfood growth story has once again put up results that should be the envy of the industry.”
Laird sales were up 30% during the quarter, a 8% improvement from its first quarter sales numbers. Much of the gains were attributed to its focus on the ecommerce segment where Laird experienced a 47% increase year-over-year.
The company’s Amazon business grew 80% and its DTC segment also ballooned 32%, up from 25% in Q1. Vieth reported that about half of its website sales came from subscriptions.
“We have built a predictable revenue model that fosters stronger customer relationships and increased brand affinity by our consumers,” he said.
Wholesale sales increased 9% year-over-year as the company focused on velocity improvement and more efficient promotional spend. Laird CFO Anya Hamill said operating expenses decreased $1 million compared to the same period last year.
“We remain focused on ongoing expense management and committed to improving our bottom line,” she said.
Since going public in 2020, the company struggled to report positive earnings; yet, in recent quarters the brand has optimized its supply chain and sharpened its marketing approach to efficiently build a strong foundation for growth.
During the second quarter, gross margin rose to 41.8%, a nearly 20% positive swing from an “unsteady” Q2 last year.
Within Laird’s large portfolio of product categories, hydration and beverage enhancing supplements saw the biggest gain year-over-year. In this past quarter, the category’s revenue was $2.3 million representing 23% of the brands total sales versus nearly $1 million in Q2 2023 with only 13% of sales for the portfolio.
Coffee creamers continue to be Laird’s highest selling category with nearly flat sales year-over-year at $4.6 million.
Company leadership expressed confidence that the seasonality of its business would drive even more growth in the back-half of the year with retail consumers returning to healthier habits after summer vacation and events like Black Friday fueling brand awareness and promotional opportunities.
Looking toward its full-year results, Laird raised its net sales forecast to the $40 million to $44 million range (previously $38 to $42 million) and the low-end estimate of gross margin increased 3% to 40% for 2024.
