After a strong start to 2018 for shareholders that included a 52-week high at 99 cents, shares of children’s apparel company Peekaboo Beans (TSX-V: BEAN) cooled off and not only given back the gains, but closing Monday at 59 cents, one cent below where they ended 2017. Stakeholders will likely be watching Tuesday to see news of a solid month of February is enough to reverse stem the downward tide.
The Vancouver-based company, which is comprised largely of women not just at the executive level, but also as an engaged direct sales force, said Tuesday morning that the average order size in February was $141.00, up 25% from February 2017’s average sale. February is closely watched, as it is the time of release of the company’s spring catalogue.
February’s average order more than doubled the $70.00 average order attributed to the direct sales industry.
Peekaboo didn’t release January’s average sale, but did disclose that total sales as of January 29 were up 108% compared to the same period in 2017. Recruitment of field "stylists," or members of the direct sales force, surged 25% in North America to now have the company represented across Canada as well as in 34 U.S. states.
Traci Costa, the ambitious mother that started Peekaboo Beans over a decade ago and serves as CEO and President, attributed the growth to the launch of an undergarment line and "grab-and-go" product offering of what the company calls "stylists," members of the direct sales team. Costa added that the grab-and-go products appeal to the full range of customers, making for easy sales for stylists at “pop-up” parties, while bolstering the top line and improve margins for Peekaboo.
To that end, more products are expected to be added to the grab-and-go offerings to complement the existing product line going forward.
Only minutes after the opening bell, shares of BEAN are down a penny at 58 cents, albeit on only about 22,000 shares in volume so far.
