Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 44

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
 coupons redeemed, returns
and credits.

Our sales
increased 17.9% to approximately $18.8 million
for the three months ended March 31, 2024, from approximately $16.0 million
for the three months ended March 31, 2023. The increase was primarily due to higher
spending from existing clients as well as business from new customers. Additionally, we benefited from the acquisition of the assets of
T R Miller in June 2023.

31

Cost of Sales

Our total
cost of sales increased 25.1% to approximately $13.2 million
for the three months ended March 31, 2024, from approximately $10.6 million
for the three months ended March 31, 2023. As a percentage of sales, cost of sales increased
to 70.2% for the three months ended March 31, 2024 from 66.1% for the three months
ended March 31, 2023. The increase in the dollar amount of cost of sales was primarily due
to an increase in sales of 17.9% from period to period.

Gross Profit

Gross profit
consists of sales less total costs of sales. Our gross profit increased 3.8% to approximately
$5.6 million, or 29.8% of sales, for
the three months ended March 31, 2024, from approximately $5.4 million,
or 33.9% of sales, for the three months ended March 31, 2023.
The increase in the dollar amount of gross profit was due to an increase in sales of approximately $2.9 million
for the reasons described above, partially offset by an increase in cost of sales of approximately $2.6 million
in aggregate for the reasons described above. The decrease in gross profit margin to 29.8% for the three months ended March
31, 2024 compared to 33.9% for the three months ended March 31, 2023 was primarily due to increases in product costs from vendors.

Operating Expenses

Operating
expenses consist of general and administrative expenses. Our operating expenses increased 4.8%,
or approximately $288 thousand, to approximately $6.3 million
for the three months ended March 31, 2024, from approximately $6.0 million
for the three months ended March 31, 2023