Thu, Nov 14, 1:37 PM (126 days ago)
In the quarterly report for Luvu Brands, Inc. (LUVU) for the period ending September 30, 2024, net sales decreased by 6% year-over-year to $5,756,000. The decline was primarily attributed to decreased sales in the Liberator product line, which fell 6% due to weakened consumer sentiment and lower wholesale sales. Gross profit margin remained stable at 26%, with total gross profit decreasing slightly to $1,517,000. Operating expenses rose to 28% of sales, leading to an operating loss of $122,000 compared to a loss of $32,000 in the prior year. The net loss increased to $210,000 from $126,000. Cash flow from operations was positive at $132,000, although total cash and cash equivalents decreased from $1,132,000 in 2023 to $1,068,000 in 2024. The company’s total liabilities decreased slightly, reflecting a reduction in long-term debt. Future operations may be impacted by ongoing market uncertainties and competition, particularly in the Avana product line, which has faced pricing pressures. The report highlights the company’s reliance on e-commerce and the potential need for additional funding to support growth initiatives.