Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) reported its financial results for the fiscal fourth quarter and year ended February 28, 2025. The company recorded total revenue of $29.6 million for fiscal year 2025, a rise from $28.0 million in fiscal year 2024. However, the total product and retail gross profit fell significantly to $0.1 million from $1.4 million the previous year, attributed to increased costs of cocoa and other inflationary pressures, coupled with higher overhead costs and reduced production volume. Total costs and expenses for fiscal year 2025 increased to $35.5 million, up from $32.9 million in fiscal year 2024, primarily driven by inflationary cost pressures, including higher raw material costs and general operating cost increases. The net loss from continuing operations widened to $6.1 million or $(0.86) per share, compared to a net loss of $4.9 million or $(0.77) per share in fiscal year 2024. In the fiscal fourth quarter of 2025, the company reported a total product and retail gross profit of $(0.8) million, a decline from $0.1 million in the same quarter of the previous year, mainly due to higher raw material costs. Fourth-quarter total costs and expenses rose to $11.6 million from $8.8 million in fiscal 2024, largely due to investments in marketing and administrative infrastructure related to a brand refresh and prototype store rollout. The net loss from continuing operations for the quarter was $2.9 million, widening from a net loss of $1.6 million in the fourth quarter of fiscal 2024. The company has embarked on a comprehensive restructuring effort aimed at revitalizing the business. This includes bringing consumer packaging back in-house, implementing a new point-of-sale system, overhauling the e-commerce platform, and realigning pricing. These operational changes are part of a broader brand refresh that includes a new logo, modern store design, and upgraded digital experience set to launch in the coming months.
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