Dear Shareholders and Loyal Community Members,
By way of introduction, my name is Jim Caccavo. I am a significant shareholder and member of the Board of Directors of HYLETE and have now taken the role of Interim CEO. This is my first letter to our community since stepping into this role. I look forward to what is ahead, and I am honored to provide support and leadership to this great company as we transition into this next phase.
I made my first investment in the company in 2013 and joined the Board of Directors shortly after that. I have made several additional investments in HYLETE since that initial investment. I am dedicated to the success of HYLETE and would like to share with you our strategic plan, along with our clear and concise mission.
Since 2012, I have seen HYLETE grow from a scrappy startup with a passionate following to a more mature company with a dedicated and talented team. A team that I believe has created the foundation for future success. As we move forward, we continue to push towards our goals to increase revenue and expand our customer base, reach break-even in Q4 of 2020 and profitability in 2021, and drive increased enterprise value. Our strategy to achieve these goals lies in our core competencies of innovating and creating great products, our direct-to-consumer e-commerce model, automation and analytics, and fostering a culture of continuous improvement focused on scalable and sustainable growth.
One such way we are working towards achieving profitability is by moving our fulfillment center to Tecate, Mexico. This move allows us to avoid expensive tariffs on imports without affecting our supply chain. Because of this move, our gross profit margins are up 30%, and we will save an estimated $1.5 million in the next 18 months. This is a massive step in our growth trajectory and a unique competitive advantage we now have as a company. We are also working to streamline our pricing, do fewer promotions, and update our shipping policies.
Our mission at HYLETE is to be a source of inspiration and motivation by designing premium fitness apparel with the input of our passionate community. We aim always to be innovative with a focus on quality. We are active listeners in our community and pay attention to our customers' needs while responding with authenticity. We help each other thrive and value other's contributions and invest in each other's growth. We are truly a brand that is built and driven by our community.
I want to thank HYLETE's Co-Founders, Ron Wilson, and Matt Paulson, for their vision and leadership over the past eight years. Under their guidance, the team has built a solid foundation of which you are an essential cornerstone. I will continue to work with the HYLETE team to create executable strategic plans, meet our objectives, and strive to create long-term value for our investors and community members. We will continue to update you on the ongoing developments and progress of the company. We will always strive to be collaborative and transparent in these efforts.
We are excited to accomplish the goals mentioned above together with you. We genuinely appreciate your support and trust in us during the current fundraising round and each preceding financing. We take our duties to our investors and community members with the utmost seriousness. We would not be where we are today without the loyal support from our entire community. We are enthusiastic about our future, and we look forward to continuing to serve our community. The future for HYLETE is bright, and there has never been a better time to join us on this journey.
Interim Chief Executive Officer
This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.