PLANO,
Texas, April 22, 2022 /PRNewswire/
-- Dogness (International) Corporation ("Dogness" or the
"Company") (NASDAQ: DOGZ), a developer and manufacturer of a
comprehensive line of Dogness-branded, OEM and private label pet
products, today announced that Argus Research, an investment
research firm, updated its Equity Research Report coverage on
Dogness.
Argus Research Co. has received a flat fee from Dogness as part
of a Sponsored Research agreement between Argus and the company. No
part of Argus Research's compensation is directly or indirectly
related to the content of its assessment or to other opinions
expressed in its research report. Please refer to the full Argus
report and the disclaimer for complete disclosures.
Click here to view Full Argus Report
Highlights, as conveyed by Argus Analyst Steve Silver, include:
- In our view, Dogness' successful execution of its business plan
led the company back to profitability in fiscal 2021, which ended
on June 30, 2021. Dogness has
benefitted from a surge in demand related to increased pet
ownership during the COVID-19 pandemic and increased momentum for
its core product line, led by higher-margin smart pet
products.
- While the company was not immune from global supply chain
issues, we are encouraged by its 27% revenue growth in fiscal 2021
and demand trends for the smart product portfolio (where sales
increased by 80% and volumes more than doubled). The expanding
smart line made up 32.1% of revenues in fiscal 2021, up from just
8% two years ago. Given its higher margins compared to the
traditional pet product line, the fiscal 2021 gross margin rose to
37.6%, a level not seen since 2018.
- During fiscal 2021, Dogness expanded the availability of its
products across multiple sales channels in China, the U.S., Canada and other key international markets,
including online, specialty stores, big box warehouse clubs, and
general retail outlets. We expect this momentum to continue, as
Dogness has established new and expanding partnerships with leading
retailers including Target, Petco, IKEA, and Walmart, and online
platforms including Amazon and Chewy.com, which we think will ease
customer concentration risk.
- Thus, we expect Dogness to continue its evolution into a
higher-margin technology-focused pet products company with a
diversified global footprint, and to capitalize on favorable
long-term global trends in the pet care industry as pet owners
return to offices and require mobile pet monitoring and care.
- As of June 30, 2021, Dogness had
$5.5 million in cash and short-term
investments on its balance sheet. Subsequently, the company raised
a total of approximately $10 million
in gross proceeds from equity offerings completed in July 2021 and February
2022. With its favorable outlook for sustained positive
operational cash flow, we believe the company is capitalized
sufficiently to execute on its business plan.
INVESTMENT THESIS (Click here to view full
Argus Equity Research Report & Investment Thesis)
About Dogness
Dogness (International) Corporation was founded in 2003 from the
belief that dogs and cats are important, well-loved family members.
Through its smart products, hygiene products, health and wellness
products, and leash products, Dogness' technology simplifies pet
lifestyles and enhances the relationship between pets and pet
caregivers. The Company ensures industry-leading quality through
its fully integrated vertical supply chain and world-class research
and development capabilities, which has resulted in over 200
patents and patents pending. Dogness products reach families
worldwide through global chain stores and distributors. For more
information, please visit: ir.dogness.com.
Forward Looking Statements
No statement made in this press release should be interpreted as
an offer to purchase or sell any security. Such an offer can only
be made in accordance with the Securities Act of 1933, as amended,
and applicable state securities laws. Certain statements in this
press release concerning our future growth prospects are
forward-looking statements regarding our future business
expectations intended to qualify for the "safe harbor" under the
Private Securities Litigation Reform Act of 1995, which involve a
number of risks and uncertainties that could cause actual results
to differ materially from those in such forward-looking statements.
The risks and uncertainties relating to these statements include,
but are not limited to, risks and uncertainties regarding lingering
effects of the Covid-19 pandemic on our customers' businesses and
end purchasers' disposable income, our ability to raise capital on
any particular terms, fulfillment of customer orders, fluctuations
in earnings, fluctuations in foreign exchange rates, our ability to
manage growth, our ability to realize revenue from expanded
operation and acquired assets in China and the U.S., our ability to attract and
retain highly skilled professionals, client concentration, industry
segment concentration, reduced demand for technology in our key
focus areas, our ability to successfully complete and integrate
potential acquisitions, and unauthorized use of our intellectual
property and general economic conditions affecting our industry.
Additional risks that could affect our future operating results are
more fully described in our United States Securities and Exchange
Commission filings. These filings are available at www.sec.gov.
Dogness may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
Company's filings with the Securities and Exchange Commission and
our reports to shareholders. In addition, please note that any
forward-looking statements contained herein are based on
assumptions that we believe to be reasonable as of the date of this
press release. The Company does not undertake to update any
forward-looking statements that may be made from time to time by or
on behalf of the Company unless it is required by law.
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SOURCE Dogness International Corporation