CCA Industries, Inc.'s sales and profits plunged in the fiscal year ended November 30, 2013. Sales fell more than 25% to $38.8 million and the company reported a net loss of more than $6.1 million as compared to a net income of $465,452 for fiscal 2012. Sales fell nearly 50% in the fourth quarter to $6.0 million, due to lower sales of the company's nail color brand and diet brand, combined with higher reserves for returns and inventory related to the nail color brand.
"As previously reported, we do not anticipate those substantial losses continuing in fiscal 2014," stated Richard Kornhauser, president and chief executive officer. "We believe CCA is well positioned for fiscal 2014 due to the outsourcing agreement with the Emerson Group, which significantly lowered our costs. The company is investing some of this savings into a more robust media advertising campaign for fiscal 2014 which should promote the growth of our brands. We expect to start realizing the savings from the outsourcing agreement beginning in the second quarter of fiscal 2014."
CCA Industries Inc. manufactures and markets health and beauty aids, including Plus+White toothpastes and teeth whiteners, Mega-T Green Tea dietary supplements and Bikini Zone medicated topical and shave gels.