Naples Soap Company, Inc (OTC PINK: NASO), a health and wellness brand that offers high-quality skin and hair care products, today reported first quarter financial results for the period ending March 31, 2023.

“We experienced mixed results for the first quarter of 2023 compared to the same period in 2022. E-commerce and wholesale sales were both up; however, our store sales were down just slightly. We attribute this drop in store sales to the lingering effects of Hurricane Ian. Many of our Southwest Florida customers were negatively impacted by the storm, and we saw less foot traffic from tourists compared to the prior year. Additionally, consumer confidence and macroeconomic trends have had an impact on the spending patterns of retail buyers. To address this, we’ve taken a deep dive into our product mix to be sure we have a wide variety of price points and have added fresh offers to generate customer interest,” said Deanna Wallin, Founder & CEO of Naples Soap Company.

• Total sales for the period ending March 31, 2023 were approximately $2.9 million compared to $2.9 million for the period ending March 31, 2022, relatively flat in comparison.
• Store sales for the period ending March 31, 2023 slightly decreased by 5% in comparison to store sales for the period ending March 31, 2022.
• E-Commerce sales, including direct-to-consumer and amazon.com sales, for the period ending March 31, 2023 increased 10% compared to the period ending March 31, 2022.
• Wholesale sales for the period ending March 31, 2023 increased 7% compared to the period ending March 31, 2022.
• Gross profit for the period ending March 31, 2023 was approximately $2.0 million compared to $2.2 million for the period ending March 31, 2022, a 6% decrease.

“On the expense side, we remain laser-focused on controlling and reducing our expenses. We’ve reduced our administrative expenses and marketing expenses compared to the same period last year. We continue to experience an increase in cost of goods sold, but we’re working with our suppliers and improving our inventory management processes to control these costs. Lastly, on the expense side, we’ve incurred expenses associated with the building-out of three new Florida stores opening in the second quarter,” added Wallin.

• Operating expenses for the period ending March 31, 2023, decreased approximately $75 thousand, or 3%, compared to the period ending March 31, 2022.

Net income for the period ending March 31, 2023 was a loss of approximately $217 thousand compared to a loss of $141 thousand for the three months ending March 31, 2022.

“Although we’ve reported a loss for the first quarter, we’re continuing to implement strategies to increase our profit margins and control or reduce expenses for the remainder of 2023,” stated Wallin.

About Naples Soap Company

Founded in 2009 by Deanna Wallin, Naples Soap Company is a supplier of more than 300 bath, body and personal care products. Products are sold at the Company’s retail locations in Florida. Naples Soap Company products are sold online from the Company’s website at www.naplessoap.com, through other DTC (direct-to-consumer) channels such as Amazon.com and in more than 300 boutiques, spas and stores throughout the United States via the Company’s wholesale division. For more information about Naples Soap Company, visit www.naplessoap.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are subject to uncertainty and may not come to fruition. Readers are cautioned not to place undue reliance on any forward-looking statement including statements that list numbers and dates.

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