LAKE FOREST, CA / ACCESSWIRE / September 30, 2016 / XFit Brands, Inc. (OTCQB: XFTB), a global supplier of fitness and MMA equipment sold at retail and fitness outlets worldwide whose brands include Throwdown® and Transformations™, today announced its full fiscal year results ending June 30, 2016 with product revenues up 27.7% vs. prior year, and gross profit up 66.2%.
XFit reported product revenues from operations for the twelve months ended June 30, 2016 of $2,342,347, a 27.7% increase versus the twelve months ended June 30, 2015. Including royalty income net revenues were up 16%. Gross profit increased to $1,031,724 or 66.2% over the same twelve months ended June 30, 2015. Gross profit margin increased to 43.4% for the twelve months ended June 30, 2016 as compared to 22.6% in the prior twelve-month period ending June 30, 2015. A 20 plus basis point increase over prior year.
Driving the improvement in top-line growth with the Company's continued execution of the one-stop shop strategy with existing and new major national and international fitness operators, including the expansion to five major new countries in the year. This significant improvement in gross profit margin materialized from both a strategic shift in product mix to higher margin recurring functional fitness items, improving operating efficiencies, and an improvement in manufacturing cost of goods sold and supply chain efficiencies.
XFit Brands has been taking advantage of the global growth in health and wellness. The underlying industry has been growing at more than 5%, as the trends to healthier lifestyles and away from obesity take hold worldwide. Fitness outlets are rapidly expanding around the world, and XFit is capitalizing on this by being a one-stop-shop supplier to them.
David Vautrin, Chief Executive Officer of XFit Brands, commented, "We are very pleased with another outstanding year of increased revenue, our 4th year in a row of significant double-digit top line growth. The Company's strategy is being effectively implemented and is resonating with our major customers. With our increased scale, we have been able to make further investments in people and infrastructure as a further springboard to take the Company to the next level of scale and profitability."
About XFit Brands®
XFit Brands, Inc. known for its experiential fitness products, is one of the leading suppliers of functional fitness brands, products, and equipment sold at retail and fitness outlets worldwide. The company provides a full portfolio of products and services spanning Mixed Martial Arts and other high and low impact fitness regimes and owns the trademarks Throwdown® trademark registered in 30 countries for its Functional Fitness line and its MMA portfolio, and Transformations® in programming. The company's portfolio of brands and products are sold in many countries around the world and supply many of the leading Gym and Fitness outlets throughout the United States. The Company's websites are www.xfitbrands.com and www.throwdown.com.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions 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. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of XFit, including statements regarding XFit's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. XFit Brands competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission may affect the Company's operations. Unless required by applicable law, XFit undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries please contact:
Scott Cameron
Websites: www.XFitBrands.com
SOURCE: XFit Brands, Inc.