Flat for the quarter but still were able to generate over 4 Million in operating cashflow. They are also calling for between 90 million and 100 Million in sales for Q4 which is pretty significant.
I was initially concerned about decreasing gross margins this Q but it is explained by the unwinding the Teaopia tea stock. Very encouraging news regarding the Manhattan store as well.
Once again, management is executing their growth strategy well and impressively. The key, as they alluded to will be to ensure their infrastructure can keep up and absorb their pace AND that they can work on improving their same-store comps. I suppose that’s why they got the marketing hire for now – very exciting story here. I’m very curious how the franchising structure works with Al-Shaya. They’ve got a considerable number of locations sprinkled around the middle east and to a Tea drinking culture at that. Huge opportunity.