Dogness Heads for Australia, Eyes More Retail Channels; Stock Jumps 7%
Pet products maker Dogness (International) Corp. (Nasdaq: DOGZ) announced Tuesday it is expanding into Australia, sending its stock soaring nearly 7% to $1.90 per American depositary share.
The Dongguan-based company, founded in 2003, provides products including pet leashes, retractable dog leashes and smart collars.
Today, Dogness said that Australian retailer JB Hi-Fi launched the sales of its smart camera feeder, app feeder and smart camera treater.
"We look forward to helping pet caregivers in Australia simplify pet lifestyles, make them more scientific, and enhance their relationships with their pets," Aaron (Silong) Chen, the chairman and chief executive officer of Dogness, said in the statement.
Looking ahead, the company said that partners including an online retailer, a department store and a consumer electronics retailer will distribute similar products in the coming days.
The market size of China's pet market reached 167 billion yuan ($23.9 trillion) in 2018 and is expected to hit 190.8 billion yuan ($27.3 trillion) this year, according to Chinese market analyst You Chong Research.
"The majority of pet owners in China are demographically situated near the coastlines in bigger cities like Shanghai, Beijing and Guangdong. However, no matter where Chinese pet owners are located, they are willing to invest good money in their furry friends," Steve Kanaval, a former banker at Morgan Stanley, wrote in July in his equity research analysis on CapitalWatch.
Apart from the domestic market, Dogness saw its exports accounting for two-thirds of its overall sales. The company's products are sold in 69 countries through retailers including PetSmart, Petco, Walmart, Target and Ikea.
Dogness became publicly traded in New York in late 2017 at $5 a share.