MedMen Enterprises (CSE:MMEN) unveiled its unaudited retail revenue results for its fiscal 2018 fourth quarter, which ended on June 30, 2018.
As quoted in the press release:
Across the Company’s operations in California, Nevada and New York, systemwide retail revenue was US$19.2 million (C$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 (C$22.8 million), with an average retail markup over wholesale of 90 [percent]. These 7 locations saw 94,000 new customers and nearly 130,000 returning customers, with an average spend per transaction of US$77.76 (C$102.09), operating at an annualized per square foot revenue of US$6,541 (C$8,470). By comparison, according to CoStar, the average sales per square foot for an Apple store is approximately US$5,546 (C$7,282) and approximately US$2,951 (C$3,875) for Tiffany & Co stores.
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,” said Adam Bierman, MedMen chief executive officer and co-founder.