Vertical Branding, Inc. announced that its revenue increased from $5.3 million to $9.1 million for the third quarter of this year, a 71% increase. The retail distribution segment contributed $5.7M of the revenue for the quarter, which is an extraordinary 373% increase compared to $1.2M for the same quarter last year. This massive jump in revenue can be mainly attributed to increasing exposure of the Company’s products through retail giants including Wal-Mart, Target, CVS, Kohl’s, Linens ‘n Things, and others.
The analyst who completed the report stated, “At a current price of $0.54, VBDG trades at a P/S multiple (ttm) of .38x, which is significantly lower than the average of its industry peers, Bare Escentuals (NASDAQ: BARE); NutriSystem (NASDAQ: NTRI); and Nautilus, Inc. (NYSE: NLS), which trade at P/S multiples of 4.0x, 1.1x, and .30x, respectively. VBDG successfully differentiates itself from competitors through its Return on Investment (ROI) marketing strategy, continuity offers and proprietary retail distribution channels.”
“We believe that VBDG’s multi-channel distribution, proven business strategies, and consistent quarter-over-quarter revenue growth warrant a higher valuation that is more in line with its peer group. We are maintaining our “Buy” rating and establishing a 12-month price target of $1.70 based on a P/S multiple of 1.28x estimated FY 2007 revenues of $39.8 million,” he added.
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