Thu, May 15, 12:05 PM (29 days ago)
**Luvu Brands, Inc. (LUVU) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $5,846,000 (Q1 2025) vs. $5,923,000 (Q1 2024), a 1% decrease. - **Gross Profit Margin:** 27% (Q1 2025) vs. 28% (Q1 2024). - **Operating Expenses:** $1,604,000 (Q1 2025) vs. $1,600,000 (Q1 2024), a slight increase. - **Net Loss:** $88,000 (Q1 2025) vs. $94,000 (Q1 2024), a reduction in net loss. - **Cash Flow from Operations:** $203,000 (Q1 2025) vs. $333,000 (Q1 2024). **Key Metrics & Trends:** - **Product Sales:** Liberator sales increased by 12%, Jaxx sales decreased by 19%, and Avana sales decreased by 24%. - **Gross Margin:** Decreased due to increased competition and production constraints. - **Operating Expenses:** Relatively stable, with slight increases in facilities expenses and equipment repairs. - **Interest Expense:** Decreased due to a reduction in notes payable. **Uncertainties & Future Operations:** - **Tariffs:** Potential adverse effects on cash position due to increased tariffs on raw materials and finished goods. - **Competition:** Increased competition from low-cost international manufacturers. - **Market Fluctuations:** Significant quarterly fluctuations in operating results due to changes in sales levels, competition, and seasonality. - **Cybersecurity Risks:** Ongoing threats of breaches and the need for continuous investment in cybersecurity measures. **Impact on Future Operations:** - **Pricing Strategy:** May need to raise prices to offset increased costs due to tariffs. - **Marketing & Sourcing:** Increasing sourcing efforts to reduce raw materials costs and reallocating marketing funds to support key brands. - **Operational Efficiency:** Focus on expanding online third-party drop-ship business and improving operational efficiency. **Conclusion:** Luvu Brands, Inc. (LUVU) faced challenges in Q1 2025, including decreased sales in certain product lines and increased competition. However, the company managed to reduce its net loss and maintain stable operating expenses. Future operations will focus on addressing tariff impacts, improving sourcing and marketing strategies, and enhancing operational efficiency. The company remains vigilant about cybersecurity risks and continues to invest in protective measures.