: Curaleaf earnings show legal U.S. weed sales flattening out as prices decline

by | Nov 7, 2022 | Stock Market

U.S. cannabis producer Curaleaf Holdings Inc. on Monday reported a bigger loss than expected during its third quarter, amid what it said were “unexpected revenue impacts” in Florida and New Jersey. Curaleaf
CURLF,
-3.43%
reported a net loss of $54.7 million, or 7 cents a share, compared with a loss of $56.9 million in the same quarter last year, or 8 cents a share. Sales came in at $340 million, compared with $317 million in the prior-year quarter; sales grew just 1% from the previous quarter.

Analysts polled by FactSet expected a loss of 3 cents a share on revenue of $337 million. Shares closed 3.4% lower on Monday. Curaleaf — one of the largest U.S. cannabis producers, with dozens of dispensaries and some degree of operations in 22 states — has opened new stores in states like Arizona, Florida and Pennsylvania in recent weeks. But the legal U.S. cannabis industry has faced a drop in weed prices, as legal producers grow aggressively and as the illicit market maintains its hold on cheaper product, while consumers appear to be rethinking their shopping habits in a universe of rising prices for basics like groceries and gasoline. Ben Kovler, CEO of Curaleaf rival Green Thumb Industries Inc.
GTBIF,
-3.84%,
citing data from BDSA, recently told MarketWatch that U.S. cannabis sales were up 3%, while unit sales had jumped 22%. The gap between revenue and the amount of goods sold — which indicate lower prices — has made it more diffi …

Article Attribution | Read More at Article Source

Share This