DONGGUAN, China, July 29, 2022 /PRNewswire/ — Dogness (International) Corporation (“Dogness” or the “Company”) (NASDAQ:DOGZ), developer and manufacturer of a full line of Dogness branded, OEM and private label pet products, today announced that Argus Research, an investment research firm retained by Dogness, has updated the cover of its equity research report on Dogness.
Click here to see the full Argus report
Highlights, as transmitted by Argus Analyst Steve Silverto understand:
- In our view, Dogness’ successful execution of its business plan returned the company to profitability in fiscal year 2021, which ended on June 30, 2021. Dogness benefited from an increase in demand related to the increase in pet ownership during the COVID-19 pandemic and increased momentum for its core product line, led by smart products for higher margin pets.
- In our view, Dogness is at the start of a growth cycle that has returned the business to profitability in fiscal year 2021 (end June 30, 2021), and continued throughout the first half of fiscal 2022 (December 31, 2021). We believe Dogness is well positioned to benefit from an increase in demand for its products, led by a range of higher-margin smart products, amid rising numbers of pet owners during the pandemic. of COVID-19.
- Dogness delivered revenue growth of 27% in fiscal 2021 and 48% in the first half of fiscal 2022, despite macroeconomic and COVID-related headwinds. We expect continued sales growth, driven by strong demand for the smart product portfolio, where sales and volumes increased 193% and 155%, respectively, in the first half of fiscal 2022 and during the same period of fiscal 2021. Smart Line comprised 54.5% of revenue in the first six months of fiscal 2022, compared to 32.1% in fiscal 2021, resulting in gross margin expansion to 39 %, compared to 37.6% for the 2021 financial year (a level not seen since 2018).
- Over the past two years, Dogness has significantly expanded product availability across multiple sales channels (online, specialty stores, big box warehouse clubs, and general retail outlets) in markets such as ChinaUnited States, Canada, Japanand others, We expect this momentum to continue as Dogness has established new and expanding partnerships with leading retailers including Target, Petco, IKEA and Walmart, and online platforms including Amazon and Chewy.com, which we believe mitigate customer concentration risk. .
- As such, we expect Dogness to continue its evolution into a higher-margin, technology-driven pet products company with a diverse global footprint, and capitalize on favorable long-term global trends in the pet products industry. pet care as pet owners return to the office and need mobile devices. supervision and care of pets.
- From December 31, 2021Dogness had $7.1 million in cash and short-term investments on its balance sheet. Subsequently, the company raised more than $17 million of the total gross proceeds of the share offerings made in February and June 2022. Based on our favorable outlook for positive and sustainable operating cash flow, we believe the company is sufficiently capitalized to execute its business plan.
INVESTMENT THESIS (Click here to see the full Argus Equity Research Report and Investment Thesis)
Argus Research Co. received lump sum compensation from Dogness as part of a sponsored research agreement between Argus and the company. No part of Argus Research’s compensation is directly or indirectly related to the content of its assessment or other opinions expressed in its research report. Please refer to the full Argus report and disclaimer for complete information.
Dogness (International) Corporation was founded in 2003 with the belief that dogs and cats are important and beloved members of the family. Through its smart products, hygiene products, health and wellness products and leash products, Dogness’ technology simplifies the lifestyle of pets and improves the relationship between pets and caregivers. The company ensures industry-leading quality through its fully integrated vertical supply chain and world-class research and development capabilities, which have resulted in over 200 patents and patents pending. Dogness products reach families around the world through chain stores and global distributors. For more information, please visit: ir.dogness.com.
Nothing in this press release should be construed as an offer to buy or sell securities. Such an offer may only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Certain statements in this press release regarding our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for “safe harbor” under the Private Securities Litigation Reform Act of 1995, which involve a certain number of risks and uncertainties that could cause actual results to differ materially from those contained in such forward-looking statements. The risks and uncertainties associated with these statements include, but are not limited to, risks and uncertainties regarding the continuing effects of the Covid-19 pandemic on our customers’ businesses and the disposable income of end buyers, our ability to raise capital on special terms, fulfillment of customer orders, fluctuations in earnings, fluctuations in currency exchange rates, our ability to manage growth, our ability to generate income from expanding operations and assets acquired in China and in the United States, our ability to attract and retain highly skilled professionals, customer concentration, concentration of industry segments, reduced demand for technology in our primary focus areas, our ability to achieve and to successfully deal with potential acquisitions and unauthorized use of our intellectual property and economic conditions affecting our industry. Additional risks that could affect our future results of operations are further described in our filings with the United States Securities and Exchange Commission. These files are available at www.sec.gov. Dogness may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission and our reports to shareholders. Additionally, please note that all forward-looking statements contained herein are based on assumptions that we believe are reasonable as of the date of this press release. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company, except as required by law.
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SOURCE Dogness International Corporation