Toughbuilt Industries Stock Plummets On Wider-Than-Expected Q2 Loss, Margin Pressure

Toughbuilt Industries Inc (NASDAQ:TBLT) reported second-quarter revenue growth of 132% year-over-year to $15.9 million, beating the consensus of $13 million.
The gross profit increased 41% Y/Y to $3.4 million, and the margin for the quarter was 21.2%, compared to 34.8% in the year-ago period. The decline in margins for Q2 was primarily due to industry-wide supply chain disruptions.
Loss per share of $(0.09) missed the consensus of $(0.06).
Operating expenses were $10.7 million, compared to $4.6 million a year ago; the increase was due to higher SG&A costs.
Toughbuilt’s cash and cash equivalents were $20.2 million as of June 30, 2021.
The company says its strategy for the remainder of 2021 is to leverage the existing retail network to launch additional product lines, expand into high-growth international markets, and enhance manufacturing and distribution capabilities by hiring industry professionals.
Price Action: TBLT shares are trading lower by 16.6% at $0.573 on the last check Monday.