MedMen Releases Preliminary Fourth Quarter 2018 Systemwide Retail Revenue Results
LOS ANGELES — (Business Wire) — MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQB: MMNFF) (FSE: A2JM6N) announced today unaudited systemwide retail revenue for its fiscal 2018 fourth quarter ended June 30, 2018. Across the Company’s operations in California, Nevada and New York, systemwide retail revenue was US$19.2 million (CA$25.2 million). The Company is expected to post its audited fiscal 2018 full year results in October.
Strong systemwide retail revenue for the quarter is primarily attributable to MedMen’s stores in Southern California’s recreational market. Excluding its Abbot Kinney store, which opened in early June of this year, the Company’s other 7 retail locations reported a combined US$17.4 million in revenue (CA$22.8 million), with an average retail markup over wholesale of 90%. These 7 locations saw 94,000 new customers and nearly 130,000 returning customers, with an average spend per transaction of US$77.76 (CA$102.09), operating at an annualized per square foot revenue of US$6,541 (CA$8,470). By comparison, according to CoStar, the average sales per square foot for an Apple store is approximately US$5,546 (CA$7,282) and approximately US$2,951 (CA$3,875) for Tiffany & Co stores.1
MedMen continued to expand its operations in Nevada, successfully opening its first branded store in downtown Las Vegas in July and recently won approval to operate a second location near the Hard Rock Hotel, the Thomas and Mack Center and McCarran International Airport, set to open in October.
Retail is the key to the fast-evolving cannabis industry. It is where brands are built and where the margins can be maintained. The rapid revenue growth in our California stores, only six months into recreational sales, is a solid reflection of our continued execution of our business thesis.
Adam Bierman, MedMen Co-founder and CEO
We will remain focused on our strategy and the kind of growth that generates long-term value for our shareholders.
In conjunction with its growing retail footprint, MedMen’s strategy is to complement its operations in every market with robust vertical integration with the objective of better margins and overall control of the supply chain. During the fourth quarter, the Company opened its Project Mustang, a 45,000-square-foot, state-of-the-art cultivation and manufacturing facility in northern Nevada. The same factory design is currently being built in Desert Hot Springs, California, with completion scheduled for early 2019. The Company plans to build the same factories in New York, where it currently holds one of 10 medical marijuana licenses, and, if it closes its proposed acquisition, near Orlando, Florida. MedMen announced in July that it had entered into a definitive agreement to purchase a Florida license holder with a cultivation facility and rights to open 25 stores in that state.
ABOUT MEDMEN:
MedMen Enterprises is a leading cannabis company in the U.S. with assets and operations across the country. Based in Los Angeles, MedMen brings expertise and capital to the cannabis industry and is one of the nation’s largest financial supporters of progressive marijuana laws. Visit http://www.medmen.com.
USD/CAD of $1.3130 as of August 13, 2018.
¹https://www.prnewswire.com/news-releases/retails-most-profitable-square-footage-636947493.html
