Chanson Gross Margin Expands to 45% as Revenue Edges Up to $18.3M
Chanson reported fiscal 2025 revenue of $18.3 million, a 0.2% rise, with gross profit up 14.2% to $8.2 million and margin expanding to 45.0% year-over-year. Net income fell to $0.2 million from $0.8 million as seasonal product revenue surged 52.8% while U.S. store sales dropped 8.4%.
1. Fiscal 2025 Financial Overview
Chanson reported fiscal year 2025 revenue of $18.3 million, a 0.2% increase from $18.2 million in 2024, with net income declining to $0.2 million from $0.8 million. Basic and diluted earnings per share fell to $0.03 from $3.68.
2. China Stores Performance
Revenue from China stores rose 1.3% to $16.4 million, driven by a 52.8% jump in seasonal products revenue to $1.5 million. Bakery product sales dipped 1.1% to $14.6 million and beverage revenue fell 35.2% to $0.2 million due to low-price competition in Xinjiang.
3. U.S. Stores Performance
United States store revenue fell 8.4% to $1.9 million as bakery products plunged 50.4% to $0.3 million following closures at two locations. Beverage sales grew 17.6% to $1.5 million through new cocktail offerings, while eat-in services revenue dropped 47.6% to $0.2 million.
4. Profitability Metrics and Outlook
Gross profit increased 14.2% to $8.2 million and gross margin expanded to 45.0%, reflecting cost controls and improved inventory management. The company plans to optimize marketing, launch healthy product innovations, and maintain strict cost discipline to drive future growth.