LAS VEGAS, July 11, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- The 4Less Group, Inc. (OTC: FLES) is issuing this update to shareholders in light of the additional time that it has been taking to complete the company’s audit and first quarterly financial filings. Although the audit has been taking longer than anticipated there have not been any issues raised by the auditors with respect to the company or its financials. Both the company and the auditors are working diligently to complete the filings as soon as possible. At this time the company is disclosing below certain financial data. Although the company anticipates that these number are materially close to being final, they are still subject to adjustments and only the financial statements filed with the SEC are to be considered as final numbers.
Consolidated Selected Financials for The 4Less Group Inc. for the 12 Month period ended January 31, 2019.
Revenues (after sales returns): $8,300,000
Gross Profit: $1,000,000
Net Operating Loss: $1,250,000
Nonconsolidated Selected First Quarter Financials for The 4Less Corp., the subsidiary of The 4Less Group, Inc., for the Three Month period ended April 30, 2019.
Revenues (after sales returns): $2,250,000
Gross Profit: $700,000
Net Operating Loss (does not include any expenses from parent company The 4Less Group, Inc.): $170,000
“Although we are disappointed that we came close to but did not hit our target of $9M in sales for the year end, we are encouraged by our performance in the first quarter of FYE 2020 especially since we made multiple changes to our platforms back-end. This caused our sales to slow down temporarily at the end of last year as we switched part of our sales away from third party sites and moved these to our proprietary websites with the goal of increasing gross margins and retaining greater control over our customer service and customer user experience,” said Christopher Davenport President and CEO of The 4Less Corp, “Now that we have made significant improvements to our operating platforms, we anticipate the trend of sales on our websites to represent the largest cash flow growth versus sales on third party market places and thus translating into greater overall gross margins for the company.”
The Company has entered into an LOI with its first small manufacturer as part of its Small Manufacturers Program and is working on a definitive agreement. Should this deal close as anticipated The Company believes this program will allow The 4Less Corp to increase its sales margins while offering additional products that are not available through other distributors. Additionally, the company is currently in negotiations with a second manufacturer at this time and looks forward to disclosing more details should a deal transpire.
About The 4Less Group, Inc.
With the recent final closing of the acquisition of the 4Less Corp., FLES is focusing all of their efforts and resources on building out their fast-growing ecommerce automotive specialty equipment parts and accessories company with highly targeted "niche" web sites.
CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements, including information about management's view of the Company's future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Factors that could cause results to differ include but are not limited to, successful performance of internal plans, product or services development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct (i) its own forward-looking statements, except as required by law, or (ii) those prepared by third parties that are not paid for by the Company.
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Source: Company press release.