On Friday, Worksport Ltd ( WKSP ) announced sales growth in its business-to-consumer (B2C) and business-to-business (B2B) segments for October and November 2024.

The company said it saw improved gross margins, a key objective in its strategic shift to selling the higher-margin Worksport ( WKSP ) branded products exclusively and discontinuing all current lower-margin private label programs.

CEO Steven Rossi said that during this holiday period, demand surged to over three times the company’s all-time daily sales record set in the third quarter.

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In October 2024, B2C sales grew 16% compared to September. In November 2024, B2C sales rose 51% from September, reflecting growing consumer adoption of Worksport’s products.

In November, Worksport ( WKSP ) announced an ambitious target to increase its average monthly B2C sales by 100% to $1 million per month in the third quarter.

In October 2024, non-private-label B2B sales increased by 38% compared to September. In November 2024, non-private label B2B sales jumped 60% from September, demonstrating strong demand from dealers and distributors for Worksport ( WKSP )-branded tonneau covers.

The upcoming launch of the premium AL4 product has the potential to surpass the demand for the AL3, the company said.

Worksport ( WKSP ) is also preparing for the entire market launch of its clean-tech power generation system, SOLIS, and COR, in 2025.

In line with its long-term growth strategy, Worksport ( WKSP ) has discontinued its private label sales, focusing only on Worksport ( WKSP ) branded B2C and B2B channels to capture higher margins and strengthen its brand identity.

This shift is already yielding results, with November 2024 gross margins improving notably compared to third-quarter 2024 levels, the company said.

It added that the revenue reduction from lower-margin private label sales has already been vastly replaced by strong growth in Worksport’s higher-margin branded sales.

Growth in the B2C and B2B segments will likely drive Worksport’s 2025 path to cash flow positivity, Worksport ( WKSP ) said.

The company anticipates improvements in gross margin as the company’s branded products gain traction and the factory achieves further economies of scale.

Price Action: WKSP stock closed higher by 6.40% at $0.6629 on Thursday.

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