Aug 03, 2021 (WallStreetPR via Comtex) -- SFLMaven Corp /zigman2/quotes/208440261/delayed SFLM -5.26% deserves a fresh look as the stock consolidates along its primary supportive range, just under its major moving averages, but holding up well.
The stock is intriguing because it's trading under a penny per share even as the company drives nearly $1M per month in sales and appears to be showing growth in its core operations.
That growth is on display in the company's recent guidance and its expanding distribution footprint.
For a little background, according to its materials, SFLM is a premium provider of high-end luxury goods to discerning clientele globally. The company has driven over $130 million in sales and received over 98,000 positive reviews since its inception. It owns and operates a globally top-rated eBay store and has become famous for Thursday Night Auction events, which often bring in more than $250k in sales on a single night.
The key item category dominating those sales is very high-end jewelry - earrings, rings, necklaces, bracelets, done in gold, silver, platinum, and every form of rare gemstone you can imagine.
That puts it in league with the "luxury goods" space, and top performers in the market such as Restoration Hardware Holdings Inc /zigman2/quotes/200286355/composite RH -4.99% , LVMH Moet Hennessy Louis Vuitton SE /zigman2/quotes/202542535/delayed LVMHF +1.85% , Signet Jewelers Ltd /zigman2/quotes/204614427/composite SIG -4.38% , Ferrari NV /zigman2/quotes/208128355/composite RACE -0.18% , Capri Holdings /zigman2/quotes/206301876/composite CPRI -3.46% , and Tapestry Inc /zigman2/quotes/207417762/composite TPR -1.82% .
SFLMaven Corp /zigman2/quotes/208440261/delayed SFLM -5.26% recently provided updated guidance for the year, noting that management was now projecting estimated revenues for the year ending December 31, 2021 of at least $11 million.
"This preliminary estimate is based on the accelerating pace of revenue growth, including the recent multi-year weekly sales record of $318,000 and first quarter revenues of $2.7 million," said Joseph Ladin, Chief Executive Officer of SFLMaven. "Our conservative projections now put us on track to generate at least $11 million of revenue this year, a nearly 40% increase over 2020 revenues and a return to our pre-pandemic revenue base."
The company's chief went on to note other positive trends:
"Combined with an increasingly strong gross margin profile driven by robust competitive bidding dynamics for our one-of-a-kind products, we believe operational execution in the months ahead will transition us towards near-term profitability. These efforts include refining ad campaigns to reduce expenses, improving advertising efficiency and scaling the quantity of listings. We are also broadening our multi-channel digital strategy and exploring other sales channels outside of eBay to diversify and expand our reach - we hope to provide more color on this front shortly."
He continued to conclude:
"Looking ahead, we are turning our focus towards completing an audit of our financial statements so that we can file a Form 10, become fully reporting and move to the OTCQB exchange as an interim stop towards our longer-term goal of an eventual Nasdaq listing. I look forward to working closely with the team at SFLMaven to create value for all of our stakeholders."
In other words, 40% year-over-year topline growth and operational streamlining so that more of that cash flows to the bottom line to generate EBITDA growth. In addition, the company is heading for expansion to other sales channels outside of its dominant eBay store.
Finally, the company is moving toward a Form 10 filing and an uplist. All good news.
One of those points that may be most interesting is the move to diversify its sales channels. SFLMaven Corp /zigman2/quotes/208440261/delayed SFLM -5.26% has been anchored to its eBay store for years. But, as noted in the above discussion, there are rumblings of new avenues for sales, which could connect the company with new communities and frontiers and, ultimately, customers.
That idea is exemplified by the company's most recent announcement, which involves the launch of its new sales channel on 1stDibs.com, a one-of-a-kind online marketplace for luxury goods.
This marks the company's first step towards diversifying its revenue base. And it's a biggie.
According to the release, 1stDibs is a leading online marketplace for extraordinary design. Since 2000, the website has captured the magic of the Paris flea market, connecting those seeking the most beautiful things on earth with highly coveted sellers and makers in vintage, antique and contemporary furniture, home decor, art, fine jewelry, watches and fashion.
You can see SFLMaven's 1stDibs store here . Be careful not to spend too much.
"We are privileged to be admitted onto such a premier luxury goods platform, serving an affluent international audience, which we believe will be receptive to the unique nature of our listings," said Joseph Ladin, Chief Executive Officer of SFLMaven. "We look forward to working closely with the dedicated team at 1st Dibs to source the hardest-to-find items their customers are searching for.
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