Mon, Sep 30, 7:07 PM (81 days ago)
Luvu Brands, Inc. reported a 16% decline in net sales for the fiscal year ending June 30, 2024, totaling $24,574,000, primarily due to a 23% drop in sales of its flagship Liberator products. Conversely, sales of Jaxx and Avana products increased by 3% and 16%, respectively. Gross profit improved to 27% from 25% year-over-year, despite total gross profit dollars decreasing by 9% to $6,526,000. Operating expenses rose to 26% of sales, driven by increased advertising and personnel costs, resulting in a net loss of $399,000 or $0.01 per diluted share, compared to a net income of $1,199,000 or $0.02 per diluted share in the previous year. The company's financial condition remains under pressure from inflation, rising operational costs, and competition, particularly from e-commerce giants. Luvu Brands plans to enhance its distribution channels and expand its product offerings while focusing on sustainability and cost management. The future outlook is cautious, emphasizing the need for strategic marketing and operational efficiency to combat economic challenges and maintain market position.