Why did YCBD's Q2 2024 earnings fall short of forecasts?

YCBD's Q2 2024 earnings fell short of forecasts due to a combination of factors: 1. **Sales Decline**: There was a downturn in sales, with total net sales decreasing by 15% year-over-year to $5.1 million. This decline was primarily attributed to a 25% reduction in direct-to-consumer revenue and a 44% decrease in wholesale business revenue compared to the same period in the previous year. 2. **Operational Losses**: Despite the sales decline, the company's gross profit margin improved to 65%. However, the operating income margin remained deeply negative at -33.93%, indicating significant operational losses. The net loss for the quarter was approximately $1.5 million, which is a slight increase from the $1.4 million loss in the same quarter of the previous year. 3. **Cost-Cutting Measures**: While the company has implemented cost-cutting measures, such as reducing non-essential staff numbers and renegotiating vendor contracts, these measures have not yet resulted in significant savings. The projected annualized savings of approximately $2.4 million were expected to be realized by August, but their impact on the quarterly earnings may not have been fully realized at the time of the earnings report. In summary, YCBD's Q2 2024 earnings fell short of forecasts due to a combination of sales decline, operational losses and cost-cutting measures that have not yet shown their full potential to improve the financial performance of the company.