According to foreign reports, Greenlane holdings, Inc. (gnln), a chain brand of e-cigarette stores and pharmacies, reported a decline in revenue in the first quarter as of March 31, 2020. Sales fell 32% from $49.9 million in the same period in 2020 to $33.9 million in the first quarter of 2020.
Greenlane blamed the FDA's restrictions on sales of certain products, mainly mint flavored Juul. Greenlane then plans to abandon low margin Juul sales and focus on higher margin products. The company had a net loss of $16.8 million in the first quarter, slightly better than the net loss of $17.7 million a year earlier in the same period in 2019. The company also recorded a $9 million goodwill impairment charge for the quarter.
Alan, chairman and CEO of Greenland, said: 'we are beginning to see the positive impact of our investment in the development and launch of the Greenlane brands, which account for a record 18.5% of net sales, driving an improvement in our gross margin month on month.
Juul, a popular candy flavored electronic cigarette product, has been criticized for its targeted methods for teenagers. As a result, Greenlane's sales fell from about $21 million in the first quarter of 2019 to about $4.4 million in the current quarter. The company has shifted its focus to Greenlane brands, with net sales up to $6.3 million, or 18.5% of total revenue. $4.6 million in the first quarter of 2020 compared to $4.6 million in the first quarter of 2019.
Greenland quickly took action to adapt to the changing rules, so that it lost its cash cow, Juul. The company closed its physical retail outlets in the Ponce city market. In addition, Greenlane closed its distribution centers in Schenectady, New York, on May 14, 2020 and in the Canadian Delta on May 15, 2020, respectively, and is expected to close its distribution centers in Jacksonville, Florida, Torrance, California, and Visalia, California. June 2020. The company did sign a new lease agreement for a new retail store in Barcelona, Spain, which was opened to the public on 26 may 202.