Atlanta, Georgia, November 14, 2018 – Luvu Brands, Inc., (OTCQB: LUVU), a designer, manufacturer and marketer of a portfolio of consumer lifestyle brands, today reported financial results for the three months ended September 30, 2018.
Operating highlights for the quarter ended September 30, 2018:
- Net sales increased 8% to $3.9 million for the first quarter of fiscal 2018, as compared to $3.6 million for the comparable prior-year period.
- Total gross profit was unchanged at $1.0 million, as compared to $1.0 million for the comparable prior-year period.
- Gross profit as a percentage of net sales decreased to 25% from 27% in the prior year first quarter.
- Operating expenses remained unchanged at $1 million during the three months ended September 30, 2018 as compared to the prior year first quarter.
- The net loss decreased to $138,000 during the current year first quarter compared to a net loss of $193,000 in the prior year.
- EBITDA, as adjusted, for the first quarter was income of $51,000 compared to a loss of $1,000 in the first quarter of fiscal 2018.
Louis Friedman, Chairman and Chief Executive Officer, commented, “During the first quarter, we achieved higher sales across all three of our consumer brands; Liberator, Jaxx and Avana. Liberator sales increased 4% to $1.7 million; Jaxx sales increased 23% to almost $1 million, and Avana sales increased 55% to $690,000. We expect to see continued strong growth for all three brands through the holiday season and during the remainder of fiscal 2019.” Mr. Friedman added, “Despite the increase in sales during the first quarter, the gross profit remained unchanged due to greater sales of Jaxx and Avana products that are typically sold at lower margins than Liberator products. We are continuing to change our production processes to be more efficient and I expect to see year-over-year margin improvements during the remainder of this fiscal year.”
Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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.
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®, inclined bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery and chronic pain; 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 160 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.jaxxliving.com, www.avanacomfort.com plus other global e-commerce sites. For more information about Luvu Brands, please visit www.luvubrands.com.
Luvu Brands, Inc.
Chief Financial Officer