On Friday, Worksport Ltd (NASDAQ:WKSP) announced sales growth in its business-to-consumer (B2C) and business-to-business (B2B) segments for October and November 2024.
The company said it saw improved gross margins, a key objective in its strategic shift to selling the higher-margin Worksport branded products exclusively and discontinuing all current lower-margin private label programs.
CEO Steven Rossi said that during this holiday period, demand surged to over three times the company’s all-time daily sales record set in the third quarter.
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In October 2024, B2C sales grew 16% compared to September. In November 2024, B2C sales rose 51% from September, reflecting growing consumer adoption of Worksport’s products.
In November, Worksport announced an ambitious target to increase its average monthly B2C sales by 100% to $1 million per month in the third quarter.
In October 2024, non-private-label B2B sales increased by 38% compared to September. In November 2024, non-private label B2B sales jumped 60% from September, demonstrating strong demand from dealers and distributors for Worksport-branded tonneau covers.
The upcoming launch of the premium AL4 product has the potential to surpass the demand for the AL3, the company said.
Worksport is also preparing for the entire market launch of its clean-tech power generation system, SOLIS, and COR, in 2025.
In line with its long-term growth strategy, Worksport has discontinued its private label sales, focusing only on Worksport branded B2C and B2B channels to capture higher margins and strengthen its brand identity.
This shift is already yielding results, with November 2024 gross margins improving notably compared to third-quarter 2024 levels, the company said.
It added that the revenue reduction from lower-margin private label sales has already been vastly replaced by strong growth in Worksport’s higher-margin branded sales.
Growth in the B2C and B2B segments will likely drive Worksport’s 2025 path to cash flow positivity, Worksport said.
The company anticipates improvements in gross margin as the company’s branded products gain traction and the factory achieves further economies of scale.
Price Action: WKSP stock closed higher by 6.40% at $0.6629 on Thursday.
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