Luvu Brands Announces Fiscal 2018 First Quarter Results

ID: 1528709
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(businesspress24) - ATLANTA, GA -- (Marketwired) -- 11/14/17 -- Luvu Brands, Inc., (OTCQB: LUVU), a manufacturer and marketer of premium consumer brands in the categories of sexual wellness, comfort top-of-bed accessories and lifestyle fashion furniture, today reported financial results for the three months ended September 30, 2017.

Net sales decreased 12% to $3.6 million for the first quarter of fiscal 2018, as compared to $4.1 million for the comparable prior-year period. Excluding the $743,000 decrease in the sales of Tenga products, the net sales would have increased 8% year-over-year.

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 increased to 27% from 24% in the prior year first quarter.

Operating expenses remained unchanged at $1 million during the three months ended September 30, 2017 as compared to the prior year first quarter.

The net loss increased slightly to $193,000 during the current year first quarter compared to a net loss of $177,000 in the prior year.

Louis Friedman, Chairman and Chief Executive Officer, commented, "During the first quarter, we were able to recover much of the discontinued Tenga revenue through higher sales of our own branded products at a higher gross profit margin. Despite the $482,000 net decline in sales revenue, our net gross profit was unchanged at $1 million and, as a percentage of revenue, increased by over 300 basis points. Mr. Friedman added, "During the first quarter, sales of our Jaxx products increased by 27% and sales of our Avana products increased by over 74%. We expect to see continued strong growth for both of these brands through the holiday season and during the remainder of fiscal 2018."

Luvu Brands, Inc. is an Atlanta, Georgia based designer, manufacturer and brand based marketer of consumer products that offers a growing number of product categories including: Liberator® sexual positioning furniture, Avana™ top-of-bed comfort pillows and Jaxx® casual fashion furniture, child, teen and adult beanbags, outdoor loungers, loveseats and daybeds. These products are sold through the Company''s websites, concept factory store, online mass merchants and retail stores worldwide. 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 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 vacuum-compressed consumer products are core to the Company''s operating principles. As the majority of the Company''s products are constructed of polyurethane foam, sustainable manufacturing practices are used including re-purposing of foam trim into beanbag fill to reduce our overall carbon footprint.

Luvu Brands promotes its products globally in a variety of distribution channels including mass market web retailers, catalogers and specialty retail stores. The Company''s brand sites include: , , plus other global e-commerce sites. For more information about Luvu Brands, please visit .

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 (loss) represents net loss before interest income, interest expense, income taxes, depreciation, amortization, and stock-based compensation expense.

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.

Luvu Brands, Inc.

Ronald Scott
Chief Financial Officer

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Date: 11/14/2017 - 09:45
Language: English
News-ID 1528709
Character count: 2371
Firma: Luvu Brands, Inc.
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