- Tool manufacturer Amazon sales more than double…
- How the pandemic may be a contributor…
One classic penny stock is flying high, reaping the benefits of its strong Amazon sales.
ToughBuilt Industries (NASDAQ: TBLT) revealed Thursday its sales on the e-commerce site jumped 118% in the first half of 2021.
The company says gross sales through June rose to approximately $5.48 million compared to approximately $2.51 million in the first half of 2020.
$TBLT jumped nearly 70% in morning trade today following the release of those numbers and at writing was still trading 67% higher.
ToughBuilt CEO Michael Pasonian said, “The significant momentum of our Amazon.com sales in the first half of 2021 reflects the increasing strength of our brand across all product lines with professional and DIY builders throughout North America. As our online presence expands into Canada and Mexico, and US sales continue to increase, we are simultaneously expanding our geographic footprint and launching new SKUs to capitalize on the strong demand for our innovative designs and features.”
Closer Look at $TBLT
ToughBuilt Industries’ shares are still worth just over $1.00 even with today’s strong gains.
The company went public in a $12.4 million IPO in November 2018.
The tool manufacturer was founded in 2012 to “create innovative products that help you build faster, build stronger, and work smarter.”
The company says they are committed to delivering quality products at an affordable price.
“We’re tradesmen, designers, engineers, and manufacturing experts. We take pride in value engineering every ToughBuilt tool to give you unprecedented performance. Like you, we work hard to work smarter. We take pride in providing building quality and innovation, at a price affordable to nearly everyone. Innovation made affordable.”
ToughBuilt started selling its products on Amazon in 2019, taking its sales international for the first time.
The company’s storefront on Amazon includes everything from tool pouches and bags to sawhorses, saw stands, knee pads, knives and cutters, and more.
In addition to Amazon, ToughBuilt’s products are also sold on its own website, Home Depot, Lowe’s, Tractor Supply, Walmart, and Menards.
So what could be behind the company’s recent surge in sales? Possibly the pandemic.
Pandemic Boost?
ToughBuilt’s huge jump in sales comes at a time when tools have been in high demand as more Americans tackled home improvement projects during the pandemic.
Amid lockdown orders in 2020, American homeowners turned to DIY projects instead of hiring contractors.
And that trend seemed to continue in early 2021.
The two largest home improvement retailers in the U.S., Home Depot (NYSE:HD) and Lowe’s (NYSE: LOW), both reported Q1 earnings that crushed analysts’ estimates.
Home Depot said its sales jumped nearly 33% in the first three months of the year, while Lowe’s sales rose nearly 40% year-over-year.
ToughBuilt’s overall Q1 earnings report showed a sharp jump in sales as well, with revenue surging 214% year-over-year “primarily driven by strong demand for ToughBuilt products that across all product lines from leading customers in the United States and Canada.”
And it makes sense the company has seen such a strong increase in Amazon sales, as more and more Americans turn to e-commerce amid the pandemic.
ToughBuilt is expected to report Q2 earnings in mid-August.
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