Atlanta, Georgia, August 15, 2017 – Luvu Brands, Inc., (OTCQB: LUVU), a manufacturer and marketer of premium lifestyle brands in the categories of sexual wellness, sleep /relaxation and fashion loungers, today announced preliminary, unaudited, net sales and gross profit for the fiscal year ended June 30, 2017.
- Preliminary net sales for the fiscal year ended June 30, 2017 were a record $16.9 million, an increase of .6% from the prior fiscal year. Sales of the companies Jaxx and Avana brands (combined) increased approximately 52% in the current fiscal year and offset the lower sales of imported products from Japan.
- Revenue growth of branded products was partially offset by lower sales of distributed products. As announced earlier this year, the Company ended its relationship with Tenga Japan. Net sales of these imported products in the current fiscal year were approximately $1.2 million less than in the prior fiscal year.
- Preliminary gross profit for the fiscal year ended June 30, 2017 was a record $4.8 million, an increase of $.6 million, or 14%, from the prior fiscal year. The improvement in gross profit was due to greater sales of manufactured products, and process and manufacturing improvements.
Louis Friedman, Chairman and Chief Executive Officer, commented, “We are pleased with the growth in net sales of our higher margin manufactured products in the year ended June 30, 2017. The changes that we made at the beginning of this calendar year are yielding positive results. Our increased focus on sales and product development of branded products and the production automation improvements that we put in place in January and earlier this fiscal year have resulted in a positive increase in gross profit”.
Final audited financial results will be released with the filing of Luvu Brand’s Annual Report on Form 10-K, which will be filed with the U.S. Securities and Exchange Commission before the Company’s late-September 2017 deadline.