Fiscal Year Ended December 31, 2025
View Visual PresentationClore Beauty Supply closed fiscal year 2025 with total revenue of $30.1 million CAD, driven almost entirely by in-store retail sales across its beauty supply locations. The company achieved a 47.5% gross margin — significantly above the retail industry average of 30-35% — reflecting strong pricing power and effective inventory management.
After operating expenses of $12.1M (predominantly payroll and occupancy costs), the company delivered $1.76M in net income — a 5.9% net margin. Online sales at $847K represent a modest but growing channel at 2.8% of total revenue.
Key Takeaway: Clore's above-average gross margin provides a strong foundation for growth. The primary opportunity lies in expanding the online channel (currently under 3% of sales) and optimizing the largest expense categories — payroll (57.5% of OpEx) and occupancy (24.9% of OpEx).
Detailed breakdown of revenue streams, cost of goods sold, and operating expenses for the twelve months ended December 31, 2025.
| Account | FY 2025 | % of Revenue |
|---|---|---|
| Revenue | ||
| In-Store Sales | $28,802,691 | 95.6% |
| Online Sales | $846,928 | 2.8% |
| Discounts | ($91,470) | -0.3% |
| Net Sales | $29,558,149 | 98.1% |
| Other Income | $567,010 | 1.9% |
| Total Revenue | $30,125,159 | 100.0% |
| Cost of Goods Sold | ||
| Product Costs | $15,506,855 | 51.5% |
| Total COGS | $15,506,855 | 51.5% |
| Gross Profit | $14,051,294 | 47.5%* |
| Operating Expenses | ||
| Salaries & Wages | $6,053,811 | 20.1% |
| Employee Benefits | $930,434 | 3.1% |
| Rent & Lease Payments | $2,421,553 | 8.0% |
| Occupancy (Repairs, Security, Tax, Utilities) | $600,540 | 2.0% |
| Marketing & Advertising | $417,703 | 1.4% |
| Bank Charges & Payment Processing | $323,196 | 1.1% |
| Office & Supplies | $315,968 | 1.0% |
| E-Commerce Operations | $186,006 | 0.6% |
| Professional Fees | $182,598 | 0.6% |
| Computer & Technology | $154,356 | 0.5% |
| Insurance | $109,120 | 0.4% |
| Travel & Meals | $152,185 | 0.5% |
| Shipping & Delivery | $47,802 | 0.2% |
| Other Operating | $239,668 | 0.8% |
| Total Operating Expenses | $12,134,930 | 40.3% |
| Other Expenses | $153,017 | 0.5% |
| Net Income | $1,763,347 | 5.9% |
* Gross margin calculated on net sales of $29.6M
Operating expenses totaled $12.1M, representing 40.3% of revenue. The two largest categories — payroll and occupancy — account for over 82% of all operating costs.
| Category | Amount |
|---|---|
| Base Salaries & Wages | $5,791,298 |
| Vacation Pay | $262,512 |
| CPP — Employer | $311,298 |
| EI — Employer | $131,119 |
| Group Benefits | $122,868 |
| Employer Health Tax | $110,036 |
| RRSP Contributions | $45,889 |
| Other (PEL, Birthday Leave, Bonus, WSIB, Severance) | $193,225 |
| Total Payroll & Benefits | $6,984,245 |
| Category | Amount |
|---|---|
| Rent & Lease | $2,421,553 |
| Repairs & Maintenance | $194,030 |
| Alarm & Security | $152,605 |
| Electricity | $130,019 |
| Property Taxes | $81,098 |
| Gas, Water & Other Utilities | $42,789 |
| Total Occupancy | $3,022,094 |
Efficiency Note: Payroll at 23.2% of revenue is within industry norms for multi-location retail. Occupancy at 10.0% of revenue suggests manageable lease terms. Combined, these two categories consume $10M of the $12.1M total OpEx — future cost optimization should focus here first.
Clore operates primarily through brick-and-mortar locations, with a growing but still-small e-commerce channel via Shopify.
The customer base consists of thousands of individual retail buyers. Most customers spend between $300 and $800 annually. A notable $1.87M is attributed to a "Default Customer" entry — likely representing POS cash/walk-in transactions where customer identity is not captured.
Opportunity: Improving point-of-sale customer identification could unlock significant marketing value. The $1.87M in unattributed sales represents potential loyalty program enrollment and targeted marketing opportunities.
Online at 2.8% has massive headroom. Target 8-10% of sales through enhanced Shopify experience, social commerce, and delivery optimization. Potential: +$2-3M revenue.
Resolve the $1.87M "Default Customer" gap. Implement loyalty program and POS prompts to capture customer data, enabling targeted marketing and retention programs.
Bank charges + Shopify fees total $323K (1.1% of revenue). Renegotiate merchant processing rates and evaluate alternative payment solutions. Target: $30-50K savings.
Payroll is the largest cost at $7M. Scheduling optimization, cross-training, and performance metrics could yield 2-3% savings without reducing service quality.