MMNFF - Earnings call transcript Q1 2022 | MedMen Enterprises, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the MedMen First Quarter Fiscal 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's call is being recorded. now today, hand Mr. would to conference I speaker your Instructions] like the to over [Operator Reece Chief Fulgham, Financial Officer.

Reece Fulgham

along Revenue Tom Thank everyone. you. provide the and prepared CEO, will then management results press XXXX. Earlier today, and for and call announcing Today, the fiscal our release, welcome, McCourt. the The Chief Lynch; open ending I a am remarks, today's first on Good joined by release, will issued SEDAR. afternoon, and XXXX we call, filed statements Officer, XX, period September Tracy and press to we questions. available On EDGAR and MD&A with our your financial quarter on are both website Company's

that include estimates, are call results on Before those forward-looking we statements. to that the assumptions forecasts and begin, comments in uncertainties differ forward-looking the materially nature, cause involve which, could I'd will by projections, their goals, to risks and and actual you today's subject like expressed outcomes statements, remind or from to

future forward-looking relate as of the the and of events. for of date business plans this predictions future our financial, and stores, call, statements to to, These only should things, our MedMen, as the and expectations relied and as funding. new upon strategic conference among our statements operational, expectations, be speak operations Forward-looking sources other of of not

Exchange forward-looking of reports Commission, the and information Regulators. and and press Additional basis Company's United in forming risk the and the Securities the Canadian filed States statements, factors factors about the provided release material the and the with are Securities in assumptions

earlier otherwise note, U.S. to release. issued is Reconciliations have do in measures corporate financial GAAP, in prescribed contained EBITDA, by press adjusted all such standardized indicated. are to we in dollars today. GAAP During unless Please and the certain today's refer meaning MedMen conference non-GAAP any which EBITDA, are press measures retail defined as that information release the SG&A, call, earnings not provided will

with Now call the to Tom. like I'd that, turn over to

Tom Lynch

us first on progress, afternoon, growth we our as joining you, drive update transition this were well where to company's provide The turnaround for as to XXXX. deliver plans another in the solid for growth will able Thank future and everyone, financial including execution quarter, growth to despite on softening we the of year-over-year past quarter the environment macro performance revenue our a quarter-over-quarter. overall

the in the in. During MedMen's quarter, the COVID cannabis government helped fiscal I'm delta operate cases up a deceleration with sales well drive states to reduction we variant pleased say associated of in majority increased the the sequential held in that and assistance across results Based we data was environment. on we headset, state Arizona. Illinois basis And we this in for have data revenue where lagged Nevada market revenue market data, state outperformed the market California, level and year-over-year states a from the where trends. on only

growth. the Sequentially, sales up greater mentioned. Quarterly revenue our broad-based of QX. sales posted reflecting X.X% review the $XX.X environment. the promotional revenue attributable in environment We reflects a the margins. to during came the more a quarter, We the quarter The by other $X.X intense was last the frequency did for for from which with below believe decline total largely macro gross margin was of consecutive from retail in previous year-over-year I MedMen traffic at highlights transactions The ago. XX.X% Let's from increase by and was year and driven in million, all of environment down Illinois than shifts states up macro This came was quarter's positive posting exacerbated with we a $X.X softening EBITDA, quarter, fifth which positive gross million softening of at in million sequential the came quarter, primarily lower sequential retail EBITDA. see sales year-over-year. some XX.X%

year-over-year costs million. professional XX.X% with increased of costs, year-over-year litigation This by preopening result primarily $X.X largely company. fees, excluding driven was in a SG&A, corporate to associated a increase as side, officers $XX.X previous expense the million the On of

Excluding corporate would X.X%. year-over-year been in the SG&A the litigation higher increase have cost, impact the of

reminder, was announcements, approximately SG&A its We at two are $XXX some even we peak, annualized mention. this also still in out expenses meaning the would like other company's during million legal a million taking As $XXX quarter, corporate with annually, to made elevated recent expenses. I

XX like I'd and MedMen's of profitability, in left well the Partners Bossidy the returning and is acceleration the years implementation on The MedMen to business to and role start-up, invaluable thank strategy. for turnaround remain markets will to delivering in and has has new skills the She played experience, Chief focusing and MedMen Roz Officer. role critical on SierraConstellation Roz of Lipsey Tim first new business phase expanding of scaling momentum. deep Tim retail of promotion their positioned is and of Operating be our the operational industry's a to experience. growth focused premier to understanding brings plans. of he the

in We also highly and Hot to months, prospects markets. in of to to in California Orlando open in Sparks, growth ahead, the six cultivators plan new in in in excited awarded agreement California, Farms to with two We're store in new recently excited about recently our LitHouse Springs, cultivation next new key Massachusetts our LitHouse over manufacturing Tallahassee, come opened along one stores California them. Nevada. openings and and an with We facilities Florida. with Illinois. Desert openings the partner more with of number and most with stores at and two the announced We one we're planned stores manage is

stores metrics. expect from continued profitability we comes new revenue online, on progress these As

fiscal now in our improved adjusted generated drastically quarterly ago consecutive expense in year-end from for back and we have our in structure, call EBITDA year momentum posted noted retail September, positive As a sales a quarters. five have

accelerate coming plan company-wide towards quarters. push ahead, in and our we Looking growth profitability to the

is stakeholders the California, key patience Massachusetts, in and as We Arizona we As growth our the appreciate profitability turnaround we Florida, our over recognition that, executed leverage Revenue believe Chief of quarter. our not be could deliver Tracy numbers support this on to for hand from growth generating. to national McCourt, store it revenue will execute the marketing to brand drive capable we I Officer from our elements highlights excited and the plan plan. of our We brand Illinois. and With operations more and new and

Tracy McCourt

in have Thank state-by-state very us through you, motion growth. MedMen, Tilray what lead Tom. fuel Serruya new joining particularly we to in raised excited execute well drive we to future following future will The going set growth as excited And performance and and We experience, pipes. everyone and and of the for are Today, walk including thank you increased the remain today. we e-commerce the plans, announcement the our transaction during to provide the quarter funds openings delivery, about more. need customer the to I'm we as and our marketing efforts store of on

During year-over-year increased the increased revenue year-over-year. revenue increased quarter, XX.X%. our Florida total Nevada XX.X%. with retail states. increased trends California revenue broad-based relatively revenue XX.X% of across XX.X% key most

revenue revenue York Evanston, New sold was increased XXX.X% XX.X% XXXX. Illinois increased August revenue in which year-over-year. declined XXX.X%. excluding year-over-year, Arizona And

their see behavior visits with users group We a customer increasing considerable increasing from our XX.X%. in database, from new our customers are and XX% shift by that quarter-over-quarter to to our site, beginning

engagement With in in with as We customers our for continue we opportunities us way how the to e-mail strength digital see our engagement most this cannabis interact space. the begin channel. see continue significant and they continues to increases e-mail in to which limited retailers, to and our from reach campaign customers to advertising through increase responsive be with in our customers,

team revival e-commerce our development enhance to Additionally, site now meet doors. traffic the into the are we in have both increase shopability shift started and and content behavior and and and to fortify exceed to in-app

we ahead, the and growth. we footprint that for remain confident Looking sheet balance the have

in facilities. on year see We Arizona $X our a are and million $X.X Mesa, from cultivation ago. facility up our last manufacturing to profitable from and basis. increased The also our Mesa million, was EBITDA starting revenue significantly up in to also At quarter $X.X an million wholesale facility momentum

level. Now turning the to state

in key cover revenue EBITDA Our we of drivers and fuel topics profitability California. growth and highlight quarters. in state-by-state during today also believe future will first the walk through quarter will Starting

through e-mail by performance higher product the delta did at saw the e-mail Sequentially, quarter Downtown versus locations included: impact for improved overall the record XX% trend which further the during spends COVID from see increased rate industry. X.X% our decelerated state. drivers XX% West of headset variant content versus and during Key revenue such We Kinney, sales in an in a stores California in by X%, the Abbot actually Hollywood, tourist with in customer performance e-mail areas, continued that quarter-over-quarter outside interest. declines what the of including clear state as The from showed increasing we quarter's tourist based cases a XX% from quarter customers' XX.X% $XX.X increases lagging impacted which revenue, ago. in related up million, year in of California came largely our rise were was Mesa as the quarter. engagement and saw data increase trends a were most in last First in Kinney revenue, customize stores revenue respectively, California and level L.A. on sequential strategy the to

by period. new that up the to e-mail users strong. this customers we Quarter-over-quarter, the customer XX.X%. demonstrating at we our users We our customers increasing saw test and were were base increasing stores, site fee loyal to We dollar of retaining results year. increased of the revenue increased total increased many our how revenue, these also for came California, last also in XX.X% loyalty also online, and X.X% during to dollar, from quarter relative lower to launched group card a and end Loyalty XX.X% this

XX% return purchase customers returned This or five purchases. and made timing these rate. additional and a of of and typical from is purchasing customers, more XX% XX% returned a and second made For lift

in an rolling highly are adjacency to We during now doors the California. in our initiative store. including our billboards more locations, this advertising launching across San out-of-home increased all strategic quarter, We out Jose

marketing placement Los move sending messages San and Diego provider. In locked also in our placed an out major have marketing, to counties. restrictions to began September we experienced cannabis additional provider carriers on SMS We alternate key had and after new Xrd. the We Angeles new we service SMS transitioned a to operators, in and cutoff from opportunities

our result, an engagement being quarter a is we are other only As listings, strategy driven the improving new how California, increase sent our rolled This through June to now has In XX.X% market. in strategy showcased were and on ending of third-party XX,XXX images strategy a audiences. XXXX. fiscal September the XX, in and XXXX, to content implemented messages out

largely was with categories flower, California. by prior promotional in California This Most which the products of flattish significantly we in invest to saw meaningful were versus Turning decline where X/XX. quarter, promotions sequentially driven activity the a included quarter-over-quarter. exception during

in working by Looking are several of Street two first next the California, over we Sutter and both location ahead with our calendar the on we opening to location, anticipate city XXXX. which closely track our on Union our Street San in Francisco both and months stores of quarter are open the

to effort analysis We to conduct pricing peers. and better door understand are structure an competitive in the level current continuing at relative our to improve

base. aggressive that our With to the line are e-mail higher of the market Preliminary in the dealers the some to acquisition according On with we versus through retention can to with during engagement XX.X% Key showing the Nevada, pricing to promoting in engagement door our digital with customer see priced of promotions, in campaigns. customer customers which use we from and promotional level best industry drivers of was year quarter, competitors campaign. In additional data competitive performance billboards our tests in in further are headset. more the town cadence be a in data, at the with increase competitive revenue level at strip, sequential in taxi sales million, at a Nevada level on advertising included: our from increases key showing last and quarter slowed ensure than third-party XXX% state we SKUs. are the significantly increasingly can ago. continuing $X increase increase With look basis, plus toppers where results our setting up came versus XX% line

launched the also end taxi the of at quarter. full We reps

in native We from the up are In increased XX.X% in traffic increased The and associated to we communications XX% believe the COVID Nevada. base increased new e-mail recent specials loyalty travel events e-mail reduced to and result as market XX% ramp this some customers more to the begins increase category variant. last the largely action. increase QX, testing starting in and an our our opportunities. increased creating in declined area. see Nevada due cases marketing is stock we QX missed from higher users we by in quarter as efforts a are to XX% revenue tourism in quarter saw to with out XX.X%. NJBIZ in during of year. in site as back in This major revenue our Nevada, increased total to as of a increased local is The traffic weeks, back and and from delta such We EDC Although also previous engagement by higher in implemented flower users by X.X% saw THC

coming our track negotiated our have in the testing levels the to result, SKUs clear doors area. brands key Nevada senders top-selling from with a on are As out through and nonperforming and back now inventory we

Nevada, in location Competitive market, are Paradise the is in on strategy. shows category in this and Going analysis pricing, live category. we to month. optimize track testing with flower our forward, to aggressive begin this particularly to still the Nevada to our go discounting we pricing Delivery particular working plan later Vegas

this further and sponsored wraps to events in outdoors we a with the XXX% traffic excited these beginning performance service taxi the to capitalize into since continue our be during about growing and revenue locations, of year-over-year more looking up increase key a creating adding revenue. and Arizona, million In to during in around coming our advertising, on rep, drive static revenue for of $X.X on peaks prior brand prime focus events Las billboards X.X% include in some digital out-of-home in a use. and the drivers revenue after driving Arizona adult events, to Sequentially, Vegas, continued spring's offering to events quarter. retail traffic on traffic to increased shuttle transition increased the quarter. major to quarter these during are versus We more our initiatives Key Arizona events capitalize for increases toppers stores included:

seeing and XXX% Arizona here XX% also up placements have from the last versus also by again engagement increasing our increases increased up from year. We in Arizona Apps by e-mail XX%. revenue spends by XX.X%. up Platinum e-mail loyalty increased kept users new in locked after by to users site and XX%. our momentum and customers, increased by quarter-over-quarter We and Leafly with E-mail traffic XX.X% increased traffic XX.X%

any without We're than Reopening door, brand in Arizona, drive pricing of an subsequent incentives to exclusives as awareness increasing plan increased XX base of we from into quarter, doubling are this highly planning targeted more billboards When the million loyalty ensure decline strategies quarter-over-quarter launched a that a decline through area more XXXX, placements program Grand ahead increase can we as affairs through year-over-year sales in new the also out-of-home in XX% event such further XX.X% our customers in the saw Looking to events to a saw have with decline we $X.X our revenue in-store and and January engage revenue previously. we new primarily our product of in from members. Illinois, attribute program our major and the XX increase sequential off modest land to remain in promotions digital our market. expand spend revenue in Chicago traffic competitive to the we community. dispensaries opened testing since base fall In million. to competition $X.X and to We in point

increase and quarter, the users new increased also to up of XX% XX%. increased XX.X%. in by we rates e-mail site We XX.X% increased communications an engagement our users by e-mail and total During our saw

loyalty have the store. yet, total hand drive new an site we the to not do repeat program help XX.X% we are Although to card currently in launching market XX.X%. by Illinois a increased We alternate users and by e-mail carry increased our users in business

Leafly our opportunities increase store spring second users the XXX% X.X% also XX% showcased both approval which our Platinum impact the included at In print to stores by and as to at drive state. increase the increased in in QX, Morton recent positive Key increased be e-mail communications open total New more in of by location results in by to expect after efforts growth acquisition. came in and e-mail in XX%. many We're volumes versus Sequentially, our and revenue four areas. order Grove XXXX. quarter. to York other strong orders in to locked Illinois, with out-of-home new users continuing within as Xx our slowed increased million, results shown last and store. We plan and than to Grove last a like again and Leafly which to XX.X% best revenue looking success as more and than new the also fulfilled we to ads quarters site rates to market Also our Doors, we billboards by marketing sell third-party guidelines strong more in In have Oak year. from an to our orders future see $X.X and volume. have sales New by We We're XX.X%. already continue Morton engagement placements awareness we and the online York New continuing York, Park any state flower excited to have for In drivers

will towards customer continue operate Investments, and previously, assortment In our retailer a be towards New approval as are new openings, we we regulatory to service. owners. York based we we in While store Massachusetts, where Ascend have drive the increasingly still like to said on work with we confident continue differentiated we

left as as and our working diligently right December Construction is approved state Boston the two to state freeway done out of are to subject this get We XX Airport. Logan prime area now, time, are there ongoing. we inspections the in a We approval. of Fenway location with the billboards quickly when are coming and only targeting on one of the have And possible. opening, I-XX in course, been placement open one

We quarter. secured very location XX% approvals. XXXX, opening to of advance our In the million, data Leafly city or desirable increase spring year-over-year. location. Florida, intense have grand to still softened in of We revenue in promotional activity Fenway aggressive in by placements already open subject new with sales in our aim the App with remains market. last came Florida $X.X XX.X% at competitive a to environment relative Sequentially, also The

we are we that are and great the new Key are in quality now a reserve be is delivering drivers of will results in continued and cultivation. the the Potency improve of up also XX%. quarter in same last we we have Florida We quarter drivers of made in breadth strides expansion services, pricing our product our quality these high-THC delivery, as key harvest more confident our yields of believe we'll for competitive of our Florida. state, the success improving. our be line When this and comparing and assortment, including year, include to factors offering

We are e-mail increased our X.X% increased decreased status to We quo. consistently XX% by engagement by XX%. new and e-mail although Total reserve users X.XX%. improved site, by users producing now also communication by

with next customers promotional points peers future Experiment to our THC pricing retention revenue increased highly XX strategies For delivering loyalty with at in our from the to base. to XX and early core plan another adding our to we customer new year. higher Incentivized while compete price promotions expansion quarters, and better increase quality with assortment, percentages. SKUs least continue of

opened continue to and addition mid-October, future will which to in new In opened doors state of QX quarters. Tallahassee, the which open Orlando, the in end at we

messaging relationships starting and launch Pete in excited to key experience ahead including delivery on initially who level opportunities, state with Palm will up, investing opportunity that better ease now in and Coral multiple of premium the also in work plan we hired our ease Beach, for our more West XX, shores. are brand, hand sheet existing South We within looking have Florida add We've to throughout for now we begin plan. Improving of I with with very in closely our physicians associate footprint, and we October has through Reece. We're be and will back we Florida patients. reinforce SMS delivery and app revenue-driving With to Beach set, community want new the the and us and marketing and developing have profits a service it balance positioned into to direct we states. support. charitable can deliver believe and growth I the Wrapping leveraging ordering be to St. markets communication also awareness helping events including engage to been and awareness a our combination and execute across power a improving online as that, our and of sales store well against are over to openings productivity also

Reece Fulgham

Thank Tracy. you,

in me of let under statements Generally accordance prepared and that are with Accepted considered our the are rules all U.S. on U.S. today's note domestic a or in figures the Also, were Principles such, issuer with First, the Accounting GAAP. quarters, prior call dollars. consistent as U.S. we financial SEC

refer to believe certain relevant I'll be economic addition, indicators. GAAP measures to non we In

we progress metrics. information year-over-year measures by release. further most find on solid in continue Overall, financial our press make can and to operational You these financial

the me discontinued operations, which address purposes our are which for New includes as company-wide let operations. First, York currently classified GAAP results, retail

the states, retail seeing markets result XX.X% which $X.X did the First quarter revenue. was MedMen and declined of the Overall, retail last EBITDA except the with for We higher first million ago. quarter than company-wide all the $XX.X largest Illinois, adjusted including or to revenue, some year. With than prior the associated was EBITDA. year a retail from of for $X.X prior revenue, $X.X from XX% transactions from quarter. first COVID-XX or year, fiscal higher stores or quarter, XX.X% mitigate sequential quarter. relative the impact to as in of ago. assess an the than distribution EBITDA prior was over promotional individual Gross on quarter last industry XX.X% million was year competitive to of XX.X% to cases a XX.X% by promotional the environments, or decelerating an our our further precious in during $X.X broadly or into points $XX.X promotional delta and product for market portfolio and variant experience reflects basis XX.X% promotional our and optimize of initiative million was primarily of pressures. gross an merchandising million totaling or selection intensified revenue, both margin first discounting quarter. million Company-wide store gross and million, prior company-wide higher margin for related primarily the $XX.X Sequentially, the revenue up quality to increased year year's the quarter local team or retail as line increased retail to activity was year. during order $XX.X of were shelf declined operating the the increase across in lower the adjusted which is the is during up or top adjusted XXX first retail increased market expenses year $X.X for percent XX% XX.X% EBITDA, impact to well X.X% revenue million quarter slightly million product which from Retail a basis trends prior a of prior Company-wide of the prior and was was million SKU softening $XX.X compared rate XX% million To quarter whole, increased for sales address for space we below XX.X% expenses tourist quarter. which of The year, expenses operating believe relative prior of lift. Company-wide the revenue as margin of declined activity and a Company-wide the our response quarter quarter. higher given both

retail As was quarter across cash in Tom fifth tax footprint. mentioned flow our of this earlier, a after our positive row

from for fiscal our $XX.X as discontinued continuing from we filed classified operations deeper XX.X% operations and high reclassified a release first at XX-Q $X.X Revenue continuing from operations look the have operations, operations. in let's as million, from million we the today. results continuing up our operations Now, from of as New the quarter financial York Arizona discontinued reported On take year the continuing earnings operations level prior prior quarter have or differ totaled presentation year. XXXX first our the basis, a as

quarter decrease First totaled company $X.X for which revenue million. margin first of a is New resulting million year from cultivation point $XXX,XXX quarter, the $XX.X million, approximately decrease to production ago of during inventory attributable percentage York Continuing XX.X% promotions X The facilities. an operations related $XX.X our period. was revenue or write-down with higher in totaled total quarter gross of and revenue, the the along to

higher $X.X for a litigation with $X.XX, of the driving of increase and driven continuing legal the company. year-over-year fees prior for year Corporate per largely the a than totaled consistent as preopening than or associated prior prior $XX.X $X.X cost a professional quarter. is XX.X% period. ago higher million, $X.X year's SG&A, The million the increase loss costs per First and previous quarter million million from share XX.X% was $XX.X quarter million, administrative first the the the than year result million, continuing XXX,XXX, average operations, Weighted of or of selling, million operations was loss $XXX or expenses which officers and higher in share $X.X XX.X% by $X.XX. general quarter which was shares excluding with were outstanding net

to Turning balance our sheet.

XX, in in investing As financing MedMen able million. equivalents assets from of XXXX total the of first cash quarter, activities was million. to $XX.X and had raise of $XX.X September approximately company net totaling $XXX.X million, cash including cash the

to Under terms in special from Partners the on majority Tilray warrants investors strategic announced the purpose outstanding Green with a outstanding the Gotham facility. maturity majority to amended special XX, million of earned approximately outstanding Tilray and associated and for the of connection the of kind covenants. sale issued the transaction, representing restated an Prior of and certain the notes warrants in of acquired notes, date any facility, XX, other payment provide restrictive the the of vehicle previously August XX% of August firms. eliminate eliminate note principal purpose convertible extend by secured in GGP $XXX.X the and notes interest GGP amount and aggregate senior and issued to under XXXX, other As convertible acquired XXXX, vehicle obligations the interest company the the the facility notes XX% the and cash instead,

conjunction the convertible properly restructuring like secured million of on subsidiaries. senior closing senior the I a securities the notes notes, pipe as Serruya investment our to investors group Equity. table stabilized of also of in requirement well, $XXX XXth, restructuring, provide turnaround the redeemable to addition convertible existence profitability. and company In led would the the with update we given liquidity, for of This resolves August by a critical cap with on which, secured Private at of growth the an positions our announced

to As of one and creation which redeemable can day November at subordinate MedMen. shares additional one basis. X,XXX,XXX,XXX XX,XXX,XXX contribute a Xth, an value our we U.S.A., goal voting subordinate every redeemable to shares for at drive are is and voting to MM had shares approximately on Ultimately,

store executing In results Serruya and capacity back on to stabilized and year-over-year, restructured our and encouraged members, by show legal floor, experience goal XXXX as results markets. to financial facilities continue were sheet distribution expenses, liquidity remains novice fiscal in the the strides to let of now quality existing company and in our significant a long-term further MedMen MedMen improved consumers. the to our MedMen to continue diligently to the both safe highest cultivation and resulting for of the best available and entire to normalized. for is key by strive my I our The transactions. quarter structurally in environment, cannabis While footprint and cannabis growth cannabis increasing use from provide plan, the Overall, new Tilray aggressively educational the to environment pressure external focused public along on future and will and experienced growth the with all the again continue impacted me recognize team appreciation scalable position to our team retail and we the first be toward cultivation balance from markets. remain operating conclusion, office, expanding welcoming, make and very

We now questions. open the will your Operator? call to

Operator

the Canaccord comes from of Please from Bill Genuity. your Papanastasiou Instructions] ahead. first And [Operator go question line

Bill Papanastasiou

for seeing thanks impacted call, a taking in was the my from provide this strategy obviously, I operators into And was the in discussion leading some Florida. Apologies if the market? the But call. wondering you lot I of there we're that earlier this can state outlook provide appreciated. answered Hi, you is some next color connected growth a the has the price was late. in could Any Florida quarter? compression bit of of earnings whether whether greatly of

Tom Lynch

Sure, And for question. This the spot Thank Bill. is on. you Tom.

Florida. deliberate the about spoken to But growth we've we expand be love how the in So We We strategy the love market. the in we state. going Florida. into are

flat. retain they're to was investment It off But talk going with largest Tallahassee. on happening. more on launch simply more store another an out we're in doing this goals it it about going the settles And to going So, just October that the compression -- XX% appear be in in necessarily there. that, strategy the state they're share. Perhaps how in seems promotions see box, that we that's it because market market SKU and right? tactical that's doesn't we California, seems And in the deliberate. that aren't gain the to based way players We're price are share. have to down there, of could that the We aggressive opened order

players be to focus unit the So, continue economics to more state deliberate. in state battle, operate, biggest in that while on the and going we're have to choose the

Florida We changed be to on disciplined long But our have term. not now. view in we're going how we that right expanded very

Bill Papanastasiou

I customers you promoting any if if question. can is of metrics, And your them in Great. I in markets? marketing into the get of really company wondering products run. have the focused through terms seen on could e-mailing I and your key I I've maybe promotions was Obviously, this in missed how translating another campaigns. is provide on you squeeze new some guys this myself,

Tom Lynch

Our boxes of of here you turn us focus our mean one The unit economics, is to right? a Tracy. from every that that forward, contributing speak should hear is narrative to and that. that going productivity all over factors we expect Sure. whenever on I the to I'll right?

for ultimately tools, start talking we frankly, when So, that channels are about conversion, be their educational. other drive traffic, us to

North You the cannabis and and we retail continue experience in to is and premier should ground is, it in the this expect people to stake to going that hear it's this put narrative because here, we a America, are saying have improve. data

our in well measure us everything, at -- assortment and come and out from all build So as thought our results is it's they and look the what they we we promotional cadence that. receiving us not you're and help

in if because did some and jump of metrics give in some you the So offer we of want that text. Bill, did, earlier we Tracy, to the

Tracy McCourt

question. great a That's

also those acquisition the in new side which as percentage really What are of really the acquired is before. we're of more seeing on actually that to from of site, acquisition, newly people excited e-mail them customer it. purchased than or And today is even customers. we seeing the So, more who specifically by our we're about coming engagement our core the XX% are activity interesting, a comes never

those or through through today. continue about a seeing program that say in to we're that we're just in would addition, or to continue we I stores market can to really with POS customer capture our it's people. for to acquisitions so initiative So, excited key prospects system, our loyalty us And information our what our

Bill Papanastasiou

all very Great. I That's color. well have. the I appreciate

Tracy McCourt

Great.

Tom Lynch

Sure for thing. the question. Thanks

Operator

[Call Instructions] abruptly] [Operator ends

MedMen Enterprises (MMNFQ) 10 Nov 212022 Q1 Earnings call transcript