SUNRISE, FL (CelebrityAccess) — Alliance Entertainment, a prominent distributor of music, movies, and electronics, experienced a significant decline in revenue during its third fiscal quarter following its completion of a special purpose acquisition company merger earlier this year.
In Q3 2023, Alliance reported a revenue decrease of 29%, with sales dropping from $320.4 million in the same quarter of 2022 to $227.7 million. The company attributed this decline to conservative inventory positions in their business-to-business channels and the prevailing macroeconomic uncertainty affecting both their business-to-business and direct-to-consumer sales channels.
Furthermore, Alliance Entertainment incurred a net loss of $7.8 million for the quarter, in stark contrast to the net income of $3.7 million it achieved during the corresponding period in 2022.
Bruce Ogilvie, Chairman of Alliance, acknowledged the third quarter as a notable period marked by the completion of the business combination with Adara Acquisition Corp., reaffirming their position as a leading distributor of music, movies, and consumer electronics. Ogilvie expressed the company’s readiness as a public entity to pursue strategic combinations that would diversify their product offerings and allow investments in operational improvements and proprietary technology. Throughout the year, Alliance has strengthened its foundation as one of the largest distributors of physical media and entertainment products globally by securing new partnerships and implementing larger-scale automation in its operations, Ogilve stated.
“While the fiscal third quarter was highly focused on our business combination, we signed several agreements of note. Our licensing agreement with The Walt Disney Company is a testament to our solid reputation as a premier resource for major studio content providers. Titles will benefit from our vast network of physical and e-commerce retailers, including several where we have proprietary fixtures for DVD and Blu-ray™ products. Our continuing partnership with the Criterion Collection allows us to distribute their top-shelf catalog to appreciative fans of classic and contemporary films of arthouse cinema and independent filmmaking,” Ogilvie added.
“Operationally, during the quarter we installed a cube-based warehouse automated storage and retrieval system that is now live and operational, supporting order fulfillment of 33 million pieces of inventory across more than 425,000 SKUs. With our incredible growth in Vinyl shipments at our Kentucky warehouse, we needed a system that could reduce the distance walked to pick product, to store in a more compact form, and reduce the amount of labor needed to handle the product. This system is designed to support future capacity as we shift toward larger scale automation” Ogilvie stated.
