Banjo & Matilda (OTC:BANJ) digital strategy takes shape

LOS ANGELES, CA May 26, 2017. Banjo & Matilda, Inc. (OTC: BANJ) (“Banjo & Matilda” or the “Company”), an e-commerce premium lifestyle brand, best known for its luxury woman’s cashmere sold at non-luxury prices, has just released its March 2017 quarter results.

Further to the previous shareholder update on March 10th, after a strategic review of the Company’s historical operating performance and the current state of the traditional retail apparel business, the Board and Management pivoted the business strategy and have wound-down its traditional wholesale business in favour of a more efficient, high-margin, direct-to-consumer e-commerce business model.  

Because of the shift to the vertical digital strategy, the following key metrics have improved for the quarter ending March 31, 2017 compared to the same period in the prior year:

  • Product margin increased to 68%, from 55%. Also up from the December 2016 Quarter.
  • Inventory efficiency increased 110% from 1.23x sales vs inventory to 2.58x,
  • Repeat purchase rates increased to 61%, from 58%,
  • Customer Lifetime Value (CLV) increased 9%,
  • Customer satisfaction “Net Promoter Score (NPS)” increased 12% to 67%, and has increased 26% since the company began tracking NPS. This represents the top 5% of NPS scores in the US (eg Apple 70%, Amazon 69%),
  • Fulfilment (Freight & Logistics) improved by decreasing from 27.4% of sales, to 19% of sales; and,
  • Overheads have reduced by 35% for the 9 months to March 31 compared to the same period in the prior year.

 

Ben Macpherson, CEO said “Management is pleased with the continued operational improvements after implementing our new digital vertical strategy as outlined in March 2017.  Core unit economics and operating metrics continued to improve in the March 2017 quarter, demonstrating the potential of the business model.  However, the company remains capital constrained, and as evidenced in Q3-17 results the company would have achieved significantly higher sales and profitability had the company been properly capitalized to hold enough inventory to meet demand, and invest in marketing”.  

Banjo & Matilda’s products can be seen on its website – www.banjoandmatilda.com.

Additional information about Banjo & Matilda, Inc. can be found at the Company’s corporate website: www.banjoandmatildainvestors.com.

Sincerely,

Ben Macpherson

Chief Executive Officer

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Forward looking Statement

Certain matters discussed in this press release are ‘forward-looking statements’ intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company’s statements regarding trends in the marketplace, growth in the number of stores that will carry its products, increases in its sales and financial results, are examples of forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, economic trends and conditions, trends in the fashion and retail industries, the acceptance of new product designs, inherent discrepancy in actual results from estimates, projections and forecasts made by management and other factors not within the Company’s control The factors discussed herein and expressed from time to time in the Company’s filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by forward looking statements made by the Company. The forward-looking statements contained herein are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.