In this clip from The Call @ Hedgeye, Consumables analyst Howard Penney highlights with Hedgeye CEO Keith McCullough how January Cannabis industry sales slowed and why he doesn’t expect the outlook for the space to get better anytime soon.
“January was pretty much a disaster for the most part,” explains Penney. “Nearly every state saw sequential declines month over month. Pretty extraordinary actually. The most mature markets in California, Oregon, and Washington saw a double digit decline.”
Penney elaborates further that, “it’s hard to know how much the industry benefited from the money the government was giving consumers, and we’re now just getting a piece of that.”
“You have the #1 factor for a growth sector; growth slowing is slowing against toughing base effects,” states McCullough. “I guess the market got that right.”
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