Luvu Brands Announces First Quarter Fiscal 2025 Financial Results
Luvu Brands (OTCQB:LUVU) reported Q1 FY2025 financial results with net revenue decreasing 4% to $5.76 million compared to the prior year. The company posted a net loss of $211,000 and an Adjusted EBITDA loss of $3,000. Gross margin remained stable at 26%. Cash position improved to $1.07 million, up 4% from June 30, 2024, while inventory decreased 8% to $3.0 million. The revenue decline was primarily due to lower sales from adult wholesale customers and the non-recurrence of a large contract order from the previous year.
Luvu Brands (OTCQB:LUVU) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025, con un riporto delle entrate nette in diminuzione del 4% a 5,76 milioni di dollari rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 211.000 dollari e una perdita di EBITDA rettificato di 3.000 dollari. Il margine lordo è rimasto stabile al 26%. La posizione di cassa è migliorata a 1,07 milioni di dollari, con un aumento del 4% rispetto al 30 giugno 2024, mentre l'inventario è diminuito dell'8%, attestandosi a 3,0 milioni di dollari. La diminuzione delle entrate è stata principalmente dovuta a vendite inferiori da parte dei clienti all'ingrosso adulti e alla non ripetizione di un grande ordine contrattuale dall'anno precedente.
Luvu Brands (OTCQB:LUVU) reportó los resultados financieros del primer trimestre del año fiscal 2025, con un ingreso neto disminuyendo un 4% a 5.76 millones de dólares en comparación con el año anterior. La compañía reportó una pérdida neta de 211,000 dólares y una pérdida de EBITDA ajustado de 3,000 dólares. El margen bruto se mantuvo estable en el 26%. La posición de efectivo mejoró a 1.07 millones de dólares, un aumento del 4% desde el 30 de junio de 2024, mientras que el inventario disminuyó un 8% a 3.0 millones de dólares. La disminución de los ingresos se debe principalmente a menores ventas de clientes mayoristas adultos y a la no recurrencia de un gran pedido contractual del año anterior.
Luvu Brands (OTCQB:LUVU)는 2025 회계연도 1분기 재무 결과를 발표했으며, 순수익이 4% 감소하여 576만 달러에 달했습니다. 이는 지난해와 비교한 수치입니다. 이 회사는 21만 1,000달러의 순손실을 기록했으며, 조정된 EBITDA 손실은 3,000달러입니다. 총 이익률은 26%로 안정적으로 유지되었습니다. 현금 잔고는 107만 달러로 개선되었으며, 이는 2024년 6월 30일 대비 4% 증가한 수치입니다. 재고는 8% 감소하여 300만 달러에 달했습니다. 매출 감소는 주로 성인 도매 고객의 판매 감소와 지난해의 대규모 계약 주문의 비재발로 인한 것이었습니다.
Luvu Brands (OTCQB:LUVU) a annoncé les résultats financiers du premier trimestre de l'exercice 2025, avec une baisse de 4% des revenus nets à 5,76 millions de dollars par rapport à l'année précédente. La société a enregistré une perte nette de 211 000 dollars et une perte d'EBITDA ajusté de 3 000 dollars. La marge brute est restée stable à 26%. La position de trésorerie s'est améliorée pour atteindre 1,07 million de dollars, soit une augmentation de 4% par rapport au 30 juin 2024, tandis que l'inventaire a diminué de 8% à 3,0 millions de dollars. La baisse des revenus était principalement due à une réduction des ventes auprès des clients de gros adultes et à l'absence de renouvellement d'un grand contrat de l'année précédente.
Luvu Brands (OTCQB:LUVU) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht, mit einem Rückgang der Nettoumsätze um 4% auf 5,76 Millionen Dollar im Vergleich zum Vorjahr. Das Unternehmen meldete einen Nettoverlust von 211.000 Dollar und einen bereinigten EBITDA-Verlust von 3.000 Dollar. Die Bruttomarge blieb stabil bei 26%. Die Liquiditätsposition verbesserte sich auf 1,07 Millionen Dollar, was einer Steigerung von 4% seit dem 30. Juni 2024 entspricht, während der Lagerbestand um 8% auf 3,0 Millionen Dollar sank. Der Rückgang der Einnahmen war hauptsächlich auf niedrigere Verkaufszahlen von Erwachsenengroßhandelskunden und das Ausbleiben eines großen Vertragsauftrags aus dem Vorjahr zurückzuführen.
- Gross margin improved slightly to 26.3% from 25.8% due to lower freight and raw material costs
- Cash position increased 4% to $1.07 million from June 30, 2024
- Inventory reduced by 8% to $3.0 million, indicating improved inventory management
- Net revenue decreased 4% to $5.76 million year-over-year
- Net loss widened to $211,000 from $126,000 in the prior year
- Adjusted EBITDA turned negative to -$3,000 from +$63,000 year-ago
- Operating costs increased to 15% of net revenue from 13% in the prior year
Reports First Quarter Fiscal 2025 Net Sales of
ATLANTA, GA / ACCESSWIRE / November 14, 2024 / Luvu Brands, Inc. (OTCQB:LUVU), a designer, manufacturer, and marketer of a portfolio of consumer lifestyle brands, announced today its financial and operational results for the first quarter of fiscal 2025 ending September 30, 2024.
For the three months ended September 30, 2024, highlights include:
Net revenue decreased by
4% to$5.76 million versus the prior year.Gross margin remained flat at
26% from a year ago.Net loss of
$211,000 , or$0.00 per basic and diluted share.Adjusted EBITDA was a loss of
$3,000 , down from a profit of$63,000 a year ago.Inventory at September 30, 2024, was
$3.0 million , an8% decrease from June 30, 2024.As of September 30, 2024, the Company had
$1.07 million in cash and cash equivalents, up4% from June 30, 2024.
Louis Friedman, Chairman and Chief Executive Officer, commented on the results, "Despite the challenging economic environment, we remain committed to strengthening our market position and enhancing operational efficiencies. The first quarter results reflect the external pressures on consumer sentiment and the absence of significant marketing events from the previous year. However, our proactive measures, including increased digital advertising and influencer engagement, have set the foundation for future growth. According to Market Survey Lab, the Adult Store Market is projected to grow at a CAGR of
Three Month Operating Results:
Net revenue in Q1 FY2025 decreased
4% to$5.76 million compared to$6.13 million in the prior year. The year-over-year decrease is primarily attributable to lower sales from our adult wholesale customers. Additionally, a large contract order from the prior year was not repeated this year.Gross profit in Q1 FY2025 totaled
$1.52 million compared to$1.58 million in the prior year, while the gross margin improved to26.3% in Q1 FY2025 versus25.8% a year ago. The decrease in gross profit is primarily due to the decline in units sold through our wholesale channels, and the improvement in gross margin is mainly due to lower freight and raw material costs compared to a year ago.Operating costs, excluding sales and marketing in Q1 FY2025, were
$884,000 , or15% of net revenue, compared to$819,000 , or13% of net revenue in the prior year. The increase was primarily attributable to increases in personnel expenses and professional fees.Sales and marketing expenses in Q1 FY2025 totaled
$645,000 , or11% of net revenue, compared to$695,000 , or11% of net revenue, in the prior year. This decrease resulted from eliminating unprofitable pay-per-click spending and reduced graphic design needs due to fewer new product launches compared to the prior year.Net loss in Q1 FY2025 was
$211,000 compared to a net loss of$126,000 in the prior year.Adjusted EBITDA was a loss of
$3,000 , down from a profit of$63,000 a year ago.
Friedman added, "As we focus on reinvigorating our products and brands, we are encouraged by the strong consumer response to our recent influencer success. This makes us confident that our fresh, updated product collections coming to market over the next year will build on that success. We believe the combination of elevated product, good storytelling, and superior customer experience will position the business to return to top-line growth in 2025 and enable us to build long-term shareholder value."
Additional Information:
Please see www.luvubrands.com for updated events, press, and new product releases. If you wish to speak to us directly, please email chris.knauf@luvubrands.com with your preferred day and time.
Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release include statements related to new products, anticipated revenue, and profitability. The Company assumes no obligation to update the cautionary information in this release.
*Use of Non-GAAP Measures - Adjusted EBITDA
Luvu Brands management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. While Adjusted EBITDA is not a measure of performance in accordance with GAAP, management believes that this non-GAAP measure provides useful information about the Company's operating results. The table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.
As used herein, Adjusted EBITDA income represents net income (loss) before interest income, interest expense, income taxes, depreciation, amortization, and stock-based compensation expense.
About Luvu Brands
Luvu Brands, Inc. designs, manufactures and markets a portfolio of consumer lifestyle brands through the Company's websites, online mass/drug merchants, and specialty retail stores worldwide. Brands include Liberator®, a brand category of iconic products for enhancing sensuality and intimacy; Avana®, yoga, inclined sleep therapy, and orthopedic pillow products; and Jaxx®, a diverse range of casual fashion daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam. Many of our products are offered flat-packed and vacuum-compressed to save on shipping and reduce our carbon footprint. The Company is headquartered in Atlanta, Georgia, in a 140,000-square-foot vertically integrated manufacturing facility that employs over 190 people. Bringing sewn products manufacturing back to the USA and creating innovative consumer brands are core to the Company's operating principles. The Company's brand sites include www.liberator.com, www.jaxxbeanbags.com, www.avanacomfort.com, plus other global e-commerce sites. For more information about Luvu Brands, please visit www.luvubrands.com.
Company Contact:
Luvu Brands, Inc.
Chris Knauf
Chief Financial Officer
770-246-6426
Chris.knauf@LuvuBrands.com
Q1 FY2025 Results
Consolidated Statements of Operations
|
| Three Months Ended |
| |||||
|
| September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
| (in thousands, except share data) |
| ||||||
|
|
|
|
|
| |||
Net Sales |
| $ | 5,756 |
|
| $ | 6,126 |
|
Cost of goods sold (excluding depreciation expense presented below) |
|
| 4,239 |
|
|
| 4,544 |
|
Gross profit |
|
| 1,517 |
|
|
| 1,582 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Advertising and promotion |
|
| 231 |
|
|
| 269 |
|
Other selling and marketing |
|
| 414 |
|
|
| 427 |
|
General and administrative |
|
| 885 |
|
|
| 819 |
|
Depreciation |
|
| 109 |
|
|
| 99 |
|
Total operating expenses |
|
| 1,639 |
|
|
| 1,614 |
|
Operating loss |
|
| (122 | ) |
|
| (31 | ) |
|
|
|
|
|
|
|
| |
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense and financing costs |
|
| (88 | ) |
|
| (94 | ) |
Total other income (expense) |
|
| (88 | ) |
|
| (94 | ) |
Income from operations before income taxes |
|
| (210 | ) |
|
| (126 | ) |
Provision for income taxes |
|
| - |
|
|
| - |
|
Net loss |
| $ | (210 | ) |
| $ | (126 | ) |
|
|
|
|
|
|
|
| |
Net loss per share: |
|
|
|
|
|
|
|
|
Basic |
| $ | (0.00 | ) |
| $ | (0.00 | ) |
Diluted |
| $ | (0.00 | ) |
| $ | (0.00 | ) |
Shares used in calculation of net income per share: |
|
|
|
|
|
|
|
|
Basic |
|
| 76,834,057 |
|
|
| 76,547,672 |
|
Diluted |
|
| 76,834,057 |
|
|
| 76,547,672 |
|
View the original press release on accesswire.com
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