Planet 13 stock is trading up after Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) made a key announcement that piqued investor interest. Let's check it out.
Strong Performance
Today, Planet 13 Holdings made an announcement that will probably prove to be a major positive for its stock. The vertically integrated Nevada-based company pre-announced that it generated revenue of $63 million for 2019.
The company said that it served as many as 695,000 customers throughout the course of the year, and the average customer spend was $90. On a per-day basis, Planet 13 served around 1,900 customers on average.
In this regard, it should be noted that the revenue figure is an approximation and has not yet been audited. The company has also revealed that its margins stood at 57% in 2019, and it was able to expand its gross margins throughout the course of the year. In the fourth quarter of 2018, it had a gross margin of around 50%.
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Planet 13 stock has been one of the top performers among cannabis stocks in 2019 and gained as much as 80%. While many of the cannabis companies in the industry are working on far more expansive growth operations, Planet 13 Holdings has taken a radically different approach to retail success. The company has instead constructed a 112,000 square feet retail location in Las Vegas where customers can buy a wide range of products.
No retailer in the industry is currently capable of rivaling the retail experience that is offered by Planet 13 at this point. In addition to that, the company is also extremely transparent in nature and has been providing updates with regards to footfall at its stores as well as the average spending of customers at regular intervals. That has also endeared investors to the company.
At the time of writing, Planet 13 stock is up 2% at $2.39 CAD.
Featured image: Canva
