- CEO says record sales prove SHRG’s “sales and support strategies are on the right path”
- Company projects investment of estimated $200,000 in second half of FY2020 for information technology systems upgrade
- SHRG’s consolidated gross profit grew by $16.2 million to $27.4 million for three months ended October 31, 2019, compared to same period prior year
Sharing Services Global Corporation (OTCQB: SHRG) in its 10-Q filed with the SEC for the three months ended October 31, 2019, reported sales of $38,850,483 for Q2 2019, or 116% greater than the $17,973,379 SHRG reported for the comparable quarter last year (http://ibn.fm/osL5U). Consolidated gross profit jumped by $16.2 million to $27.4 million for the same period compared to Q2 2018.
In the filing, SHRG further reported that its consolidated operating earnings were $3.9 million in the fiscal quarter ended October 31, 2019, compared to $866,802 for the comparable period the prior year. Consolidated gross margin also grew 70.9% for the three months ended October 31, 2019, compared to 62.2% the prior year (http://ibn.fm/e4E09). The company said the higher margins partly resulted from the economies of scale achieved by shipping more product.
The filing continued to describe SHRG’s intention to implement a system to upgrade its information technology system in the second half of fiscal year 2020; the approximate cost for the upgrade will be $200,000. This announcement comes on the heels of a comprehensive assessment of the system in the six-month period ending October 31, 2019.
Sharing Services’ Q2 record revenues continues the trend of Q1 2019, the three months ending July 31, when SHRG achieved revenues of $35.4 million, more than double that of the comparable period in 2018 (http://ibn.fm/y5ANF). These numbers bring SHRG’s sales revenues since December 2017 to an impressive cumulative total of $169 million. One significant contributor to the company’s success seems to be its December 2017 launch of a proprietary line of products through its Elepreneurs and Elevacity subsidiaries.
“Product sales for our incredible health and wellness products of Elevacity Global continue to be strong, consistently increasing each quarter,” SHRG CEO John “JT” Thatch stated in a news release. “Our Q2 revenues demonstrate that our sales and support strategies are on the right path as we continue to grow in the direct-selling marketplace.” Thatch credited SHRG’s independent distributors, called Elepreneurs, and its corporate office team for the company’s gains.
SHRG’s Elepreneurs are seeing remarkable success as they employ the company’s Blue Ocean selling strategy in the direct-sales market (http://ibn.fm/JbMYg). The Blue Ocean Strategy is an approach to selling that makes competition irrelevant by creating and operating in an uncontested market space.
The launch of SHRG’s proprietary line of health and wellness products in 2017, through its Elepreneurs and Elevacity subsidiaries, was a milestone for the company. The product line consists of three sectors: anti-aging skin care, functional beverages and natural supplements. All are based on the company’s exclusive D.O.S.E. product formulation of four hormones designed to promote happiness and well-being (http://ibn.fm/fALYi). Thatch said the company would continue to evaluate its expansion plans, products, and strategies as it endeavors to continue its success in 2020.
Sharing Services Global Corporation is a diversified company, with Elepreneurs Holdings and Elevacity Holdings being its primary operating subsidiaries. SHRG markets and distributes health and wellness products that are sold under the Elevate brand through an independent sales force of distributors, or Elepreneurs, using the direct-selling business model. Sharing Service’s current product offerings include its Elevate health and wellness product line, launched in December 2017. The company’s Elevate product line consists of nutraceutical products referred to as D.O.S.E., which refers to key hormones dopamine, oxytocin, serotonin, and endorphins.
For more information, visit the company’s website at www.SHRGInc.com
NOTE TO INVESTORS: The latest news and updates relating to SHRG are available in the company’s newsroom at http://ibn.fm/SHRG