Rocky Mountain Chocolate Factory (RMCF) Fiscal Q2 2027 Earnings Call: Margin Improves as Strategic Review Continues
Source Tradingkey
Key Takeaways
- Fiscal Q2 2027 revenue was $6.7 million, down from $6.8 million a year earlier but up 9% sequentially due to the typical seasonal increase in activity.
- Product sales rose 2% year over year to $5.3 million. Higher company-owned retail sales and price increases were offset by lower Durango product sales and lower royalty and marketing fees.
- Product and retail gross profit increased to $2.4 million from roughly breakeven. The company reported gross margin of 8%, compared with negative 0.6% a year earlier.
- Net loss widened to $1.3 million, or $0.14 per share, from $0.7 million, or $0.09 per share, as total costs and expenses increased to $7.7 million.
- After quarter-end, Rocky Mountain Chocolate Factory completed a roughly $6.6 million sale-leaseback of its Durango facility and used the proceeds to repay $6.6 million of promissory notes carrying 12% interest.
- The Board is reviewing strategic and financial alternatives, including financing, a potential sale, merger or other business combination, and a going-private transaction.
Key Financial Data
| Metric | Fiscal Q2 2027 | Year-Ago Period / Comparison | Commentary |
|---|---|---|---|
| Total revenue | $6.7 million | $6.8 million | Increased 9% sequentially |
| Product sales | $5.3 million | $5.2 million | Up 2% year over year |
| Product and retail gross profit | $2.4 million | Roughly breakeven | Improved production and lower cost of sales contributed |
| Gross margin | 8% | Negative 0.6% | Year-over-year improvement |
| Total costs and expenses | $7.7 million | $7.3 million | Higher store, franchise and general administrative costs |
| Net loss | $1.3 million | $0.7 million | Loss widened year over year |
| Loss per share | $0.14 | $0.09 | Both figures are negative |
| Cash | $0.4 million | $1.2 million at fiscal 2026 year-end | Balance as of August 31, 2026 |
| Inventory | $2.6 million | $4.1 million at fiscal 2026 year-end | Lower inventory balance |
| Debt outstanding | $6.9 million | $6.6 million at fiscal 2026 year-end | Balance as of August 31, 2026 |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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