Canadian cannabis retailer Fire & Flower reported a loss of 21.6 million Canadian dollars ($16 million) on plunging sales for the quarter ended July 30, 2022.
Revenue of CA$40.7 million for the quarter was 6% lower than the same period one year ago, even though overall industry sales grew substantially over the same period.
The results were below expectations of analysts, who attributed the weaker-than-expected performance to a reduction in store count.
The company had 101 operational stores in the previous quarter, but that number fell to 92 after the closing of underperforming locations, according to a report by Alberta-headquartered ATB Financial.
“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,” CEO Stéphane Trudel said.
He noted that the Toronto-headquartered company is focusing on near-term initiatives, such as its membership pricing
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