Luvu Brands Announces Third Quarter Fiscal 2025 Results and Strategic Growth Initiatives
Luvu Brands (OTCQB:LUVU) reported its Q3 fiscal 2025 results, showing mixed performance. For Q3, net revenue declined 1% to $5.85 million, with a gross margin of 27%. The company posted a net loss of $88,000, though this represented a 6% improvement over the previous year. For the nine months ended March 31, 2025, revenue remained stable at $18.79 million, while net loss narrowed significantly by 45% to $105,000.
The company faced challenges from fluctuating consumer demand and evolving import tariffs but implemented strategic initiatives including supply chain optimization, cost management, and automation investments. Luvu Brands diversified its supplier base and enhanced operational efficiency through technology upgrades, though facility maintenance costs increased in Q3. The company maintains four main brands: JAXX, AVANA, LIBERATOR, and FOAMLABS, focusing on lifestyle and consumer products.
Management remains focused on strategic investments, implementing new systems, and integrating advanced automation to drive long-term growth and enhance shareholder value.
Luvu Brands (OTCQB:LUVU) ha comunicato i risultati del terzo trimestre dell'esercizio fiscale 2025, evidenziando performance contrastanti. Nel Q3, i ricavi netti sono scesi dell'1% a 5,85 milioni di dollari, con un margine lordo del 27%. L'azienda ha registrato una perdita netta di 88.000 dollari, sebbene si tratti di un miglioramento del 6% rispetto all'anno precedente. Nei nove mesi terminati il 31 marzo 2025, i ricavi sono rimasti stabili a 18,79 milioni di dollari, mentre la perdita netta si è ridotta significativamente del 45%, attestandosi a 105.000 dollari.
L'azienda ha affrontato difficoltà dovute a una domanda dei consumatori altalenante e a tariffe doganali in evoluzione, ma ha adottato iniziative strategiche come l'ottimizzazione della catena di approvvigionamento, la gestione dei costi e investimenti in automazione. Luvu Brands ha diversificato la base dei fornitori e migliorato l'efficienza operativa tramite aggiornamenti tecnologici, nonostante i costi di manutenzione degli impianti siano aumentati nel Q3. L'azienda gestisce quattro marchi principali: JAXX, AVANA, LIBERATOR e FOAMLABS, focalizzati su prodotti lifestyle e per i consumatori.
La direzione rimane concentrata su investimenti strategici, implementazione di nuovi sistemi e integrazione di automazioni avanzate per sostenere la crescita a lungo termine e aumentare il valore per gli azionisti.
Luvu Brands (OTCQB:LUVU) informó sus resultados del tercer trimestre del año fiscal 2025, mostrando un desempeño mixto. En el Q3, los ingresos netos disminuyeron un 1% hasta 5,85 millones de dólares, con un margen bruto del 27%. La compañía registró una pérdida neta de 88,000 dólares, aunque esto representó una mejora del 6% respecto al año anterior. En los nueve meses finalizados el 31 de marzo de 2025, los ingresos se mantuvieron estables en 18,79 millones de dólares, mientras que la pérdida neta se redujo significativamente un 45%, quedando en 105,000 dólares.
La empresa enfrentó desafíos debido a la demanda fluctuante de los consumidores y a la evolución de los aranceles de importación, pero implementó iniciativas estratégicas como la optimización de la cadena de suministro, gestión de costos e inversiones en automatización. Luvu Brands diversificó su base de proveedores y mejoró la eficiencia operativa mediante actualizaciones tecnológicas, aunque los costos de mantenimiento de las instalaciones aumentaron en el Q3. La compañía mantiene cuatro marcas principales: JAXX, AVANA, LIBERATOR y FOAMLABS, enfocadas en productos de estilo de vida y consumo.
La dirección sigue enfocada en inversiones estratégicas, implementación de nuevos sistemas e integración de automatización avanzada para impulsar el crecimiento a largo plazo y aumentar el valor para los accionistas.
Luvu Brands (OTCQB:LUVU)는 2025 회계연도 3분기 실적을 발표하며 혼재된 성과를 보였습니다. 3분기 순매출은 1% 감소한 585만 달러를 기록했으며, 총이익률은 27%였습니다. 회사는 8만 8천 달러의 순손실을 기록했으나, 이는 전년 대비 6% 개선된 수치입니다. 2025년 3월 31일 종료된 9개월 동안 매출은 1,879만 달러로 안정적이었으며, 순손실은 45% 크게 감소한 10만 5천 달러로 줄었습니다.
회사는 변동하는 소비자 수요와 변화하는 수입 관세로 인한 어려움에 직면했으나, 공급망 최적화, 비용 관리, 자동화 투자 등 전략적 이니셔티브를 실행했습니다. Luvu Brands는 공급업체 기반을 다양화하고 기술 업그레이드를 통해 운영 효율성을 향상시켰으나, 3분기 시설 유지비용은 증가했습니다. 회사는 JAXX, AVANA, LIBERATOR, FOAMLABS 등 네 가지 주요 브랜드를 보유하며 라이프스타일 및 소비재에 집중하고 있습니다.
경영진은 장기 성장 촉진과 주주 가치를 높이기 위해 전략적 투자, 신규 시스템 도입, 첨단 자동화 통합에 계속 주력하고 있습니다.
Luvu Brands (OTCQB:LUVU) a publié ses résultats du troisième trimestre de l'exercice fiscal 2025, montrant des performances mitigées. Pour le T3, le chiffre d'affaires net a diminué de 1 % pour atteindre 5,85 millions de dollars, avec une marge brute de 27 %. La société a enregistré une perte nette de 88 000 dollars, bien que cela représente une amélioration de 6 % par rapport à l'année précédente. Sur les neuf mois clos au 31 mars 2025, le chiffre d'affaires est resté stable à 18,79 millions de dollars, tandis que la perte nette s'est réduite de manière significative de 45 % pour atteindre 105 000 dollars.
La société a fait face à des défis liés à la demande des consommateurs fluctuante et à l'évolution des droits d'importation, mais a mis en œuvre des initiatives stratégiques incluant l'optimisation de la chaîne d'approvisionnement, la gestion des coûts et des investissements dans l'automatisation. Luvu Brands a diversifié sa base de fournisseurs et amélioré l'efficacité opérationnelle grâce à des mises à niveau technologiques, bien que les coûts de maintenance des installations aient augmenté au T3. La société gère quatre marques principales : JAXX, AVANA, LIBERATOR et FOAMLABS, axées sur les produits lifestyle et grand public.
La direction reste concentrée sur les investissements stratégiques, la mise en place de nouveaux systèmes et l'intégration d'automatisations avancées pour stimuler la croissance à long terme et accroître la valeur pour les actionnaires.
Luvu Brands (OTCQB:LUVU) veröffentlichte die Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 und zeigte dabei gemischte Leistungen. Im Q3 sanken die Nettoumsätze um 1 % auf 5,85 Millionen US-Dollar, bei einer Bruttomarge von 27 %. Das Unternehmen verzeichnete einen Nettoverlust von 88.000 US-Dollar, was jedoch eine Verbesserung von 6 % gegenüber dem Vorjahr darstellt. Für die neun Monate bis zum 31. März 2025 blieben die Umsätze mit 18,79 Millionen US-Dollar stabil, während der Nettoverlust sich deutlich um 45 % auf 105.000 US-Dollar verringerte.
Das Unternehmen stand vor Herausforderungen durch schwankende Verbrauchernachfrage und sich ändernde Importzölle, setzte jedoch strategische Initiativen um, darunter Optimierung der Lieferkette, Kostenmanagement und Investitionen in Automatisierung. Luvu Brands diversifizierte seine Lieferantenbasis und steigerte die operative Effizienz durch technologische Upgrades, obwohl die Wartungskosten der Anlagen im Q3 zunahmen. Das Unternehmen führt vier Hauptmarken: JAXX, AVANA, LIBERATOR und FOAMLABS, die sich auf Lifestyle- und Konsumprodukte konzentrieren.
Das Management bleibt fokussiert auf strategische Investitionen, die Implementierung neuer Systeme und die Integration fortschrittlicher Automatisierung, um langfristiges Wachstum zu fördern und den Aktionärswert zu steigern.
- Net loss improved by 45% to $105,000 for the nine-month period compared to $191,000 last year
- Adjusted EBITDA increased 6% to $514,000 for the nine-month period
- Successful cost management and sourcing improvements led to enhanced gross profit
- Strategic investments in automation and technology to improve operational efficiency
- Q3 net revenue declined 1% to $5.85 million
- Gross margin decreased to 27% from 28% year-over-year
- Q3 Adjusted EBITDA declined by $35,000 compared to prior year
- Increased facility and equipment maintenance costs impacting expenses
ATLANTA, GA / ACCESS Newswire / May 15, 2025 / Luvu Brands, Inc. (OTCQB:LUVU), a leading designer, manufacturer, and marketer of consumer lifestyle brands, today reported financial and operational results for the third quarter of fiscal 2025, ended March 31, 2025.
Financial Highlights
Three Months Ended March 31, 2025:
Net revenue declined
1% to$5.85 million , reflecting softened consumer sentiment.Gross profit totaled
$1.60 million , down$36,000 year-over-year, with a gross margin of27% compared to28% in the prior year.Net loss of
$88,000 represented a6% improvement over the previous year's loss.Adjusted EBITDA of
$116,000 declined by$35,000 compared to the prior year.
Nine Months Ended March 31, 2025:
Net revenue held steady at
$18.79 million versus$18.84 million a year ago.Gross profit improved to
$5.1 million , with an emphasis on cost efficiencies and sourcing improvements.Net loss narrowed to
$105,000 , a significant45% reduction compared to a loss of$191,000 last year.Adjusted EBITDA increased
6% to$514,000 , reflecting continued operational enhancements.
During the third quarter of fiscal 2025, Luvu Brands navigated a dynamic economic landscape marked by fluctuating consumer demand and evolving import tariffs. While these external pressures impacted wholesale sales, the company continues to refine its strategies to enhance operational efficiency and drive long-term growth.
A key component of Luvu Brands' adaptability has been its focus on supply chain optimization and cost management, particularly in response to shifting import tariffs. The company has actively improved its sourcing of raw materials, leveraging relationships with vendors to reduce costs and enhance production margins. However, ongoing tariff fluctuations have created challenges in maintaining predictable pricing and securing cost-effective materials.
To mitigate these effects, Luvu Brands has diversified its supplier base, exploring alternative sourcing strategies both domestically and internationally. By identifying lower cost vendors, the company has been able to reduce reliance on tariff impacted imports. Additionally, tighter control over production expenses has helped offset revenue fluctuations, ensuring that profitability remains a core priority.
Luvu Brands continues to closely monitor trade policies, adjusting procurement strategies as needed to maintain efficiency and stability in its supply chain. By remaining agile and proactive, the company is positioning itself to minimize financial disruptions while sustaining growth in a rapidly evolving economic landscape.
Luvu Brands also made targeted investments in automation and technology to enhance productivity, reduce fulfillment costs, and streamline distribution processes. These investments, along with operational refinements, position the company to navigate shifting market conditions with greater agility.
The company's marketing strategy has also evolved, with a sharper focus on high-ROI channels. By eliminating unprofitable pay-per-click campaigns and shifting resources to platforms with stronger conversion rates, Luvu Brands has improved its marketing efficiency. At the same time, the company continues to innovate its product offerings, introducing fresh designs that align with consumer preferences and strengthen brand appeal.
Additionally, facility and equipment maintenance costs-previously a minor expense-increased in Q3 as the company invested in infrastructure improvements to support future growth. These investments ensure that Luvu Brands can maintain high production standards while expanding its distribution capabilities.
Louis Friedman, CEO of Luvu Brands, expressed confidence in the company's ability to adapt and drive long-term growth. "As market conditions evolve, we are proactively adjusting our pricing strategies while remaining committed to increasing profitability and shareholder value," Friedman stated. "With our diverse marketing channels and strong domestic manufacturing capabilities, Luvu Brands is well-positioned for continued expansion."
Looking forward, the company will prioritize strategic investments aimed at accelerating profitable growth, enhancing distribution networks, and improving operational efficiency. "Our focus remains on pursuing strategic investments, implementing new systems, and integrating advanced automation," Friedman added. "These initiatives are critical to our long-term success and will further strengthen our competitive position in the market."
As Luvu Brands continues to drive innovation, the company remains committed to expanding its reach and delivering sustainable value to shareholders.
Additional Information:
Please see www.luvubrands.com for updated events, press, and new product releases. If you would like to speak with us directly, please email chris.knauf@luvubrands.com with your preferred day and time.
Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements. 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.
*Use of Non-GAAP Measures - Adjusted EBITDA
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 represents net income (loss) before interest income, interest expense, income taxes, depreciation, amortization, and stock-based compensation expense.
About Luvu Brands
Luvu Brands, Inc. is an Atlanta, Georgia based designer, manufacturer, and marketer of a portfolio of consumer lifestyle brands, including:
■ | JAXX-a diverse range of convertible daybeds, headboard panels, outdoor soft seating and bean bags made from repurposed polyurethane foam trim. | |
■ | AVANA-products for yoga exercise, sleep comfort and inclined bed therapy. | |
■ | LIBERATOR-transformable chaises and specially designed pillows and props for enhancing sexual performance. | |
■ | FOAMLABS-private label Jaxx products and contract manufacturing for hospitality, school, furniture, mass market, and beyond. |
The Company's brand sites include www.liberator.com, www.jaxxbeanbags.com, www.avanacomfort.com, plus other global e-commerce sites.
For more information about Luvu Brands, please visit www.luvubrands.com.
Company Contact:
Luvu Brands, Inc.
Christopher Knauf
Chief Financial Officer
770-246-6426
Chris.knauf@LuvuBrands.com
Consolidated Statements of Operations
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(in thousands, except share data) | (in thousands, except share data) | |||||||||||||||
Net Sales | $ | 5,846 | $ | 5,923 | $ | 18,787 | $ | 18,835 | ||||||||
Cost of goods sold (excluding depreciation expense presented below) | 4,243 | 4,284 | 13,687 | 13,795 | ||||||||||||
Gross profit | 1,603 | 1,639 | 5,100 | 5,039 | ||||||||||||
Operating expenses: | ||||||||||||||||
Advertising and promotion | 240 | 244 | 718 | 785 | ||||||||||||
Other selling and marketing | 430 | 463 | 1,281 | 1,334 | ||||||||||||
General and administrative | 827 | 789 | 2,610 | 2,452 | ||||||||||||
Depreciation | 107 | 104 | 324 | 307 | ||||||||||||
Total operating expenses | 1,604 | 1,600 | 4,933 | 4,878 | ||||||||||||
Operating income | (1 | ) | 39 | 167 | 162 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest expense and financing costs | (87 | ) | (133 | ) | (272 | ) | (322 | ) | ||||||||
Total other income (expense) | (87 | ) | (133 | ) | (272 | ) | (322 | ) | ||||||||
Income from operations before income taxes | (88 | ) | (94 | ) | (105 | ) | (160 | ) | ||||||||
Provision for income taxes | 0 | 0 | 0 | (31 | ) | |||||||||||
Net Income/(loss) | $ | (88 | ) | $ | (94 | ) | $ | (105 | ) | $ | (191 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0 | ) | $ | (0 | ) | $ | (0 | ) | $ | (0 | ) | ||||
Diluted | $ | (0 | ) | $ | (0 | ) | $ | (0 | ) | $ | (0 | ) | ||||
Shares used in calculation of net income per share: | ||||||||||||||||
Basic | 76,834,057 | 76,547,672 | 76,834,057 | 76,547,672 | ||||||||||||
Diluted | 76,834,057 | 76,547,672 | 76,834,057 | 76,547,672 | ||||||||||||
Consolidated Balance Sheets
March 31, | ||||||||
2025 | June 30, | |||||||
(unaudited) | 2024 | |||||||
Assets: | (in thousands, except share data) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,110 | $ | 1,028 | ||||
Accounts receivable, net of allowance for doubtful accounts and allowance for discounts and returns of | 1,420 | 1,061 | ||||||
Inventories, net of allowance for inventory reserve of | 3,457 | 3,287 | ||||||
Other current assets | 137 | 141 | ||||||
Total current assets | 6,124 | 5,517 | ||||||
Equipment, property and leasehold improvements, net | 1,573 | 1,870 | ||||||
Finance lease assets | 104 | 103 | ||||||
Operating lease assets | 1,179 | 1,545 | ||||||
Other assets | 96 | 96 | ||||||
Total assets | $ | 9,076 | $ | 9,131 | ||||
Liabilities and stockholders' equity: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,811 | $ | 1,502 | ||||
Current debt | 1,744 | 1,639 | ||||||
Other accrued liabilities | 694 | 508 | ||||||
Operating lease liability | 614 | 528 | ||||||
Total current liabilities | 4,863 | 4,177 | ||||||
Noncurrent liabilities: | ||||||||
Deferred Tax Liability | 119 | 119 | ||||||
Long-term debt | 665 | 854 | ||||||
Long-term operating lease liability | 677 | 1,151 | ||||||
Total noncurrent liabilities | 1,461 | 2,124 | ||||||
Total liabilities | 6,324 | 6,301 | ||||||
Commitments and contingencies (See Note 13) | - | - | ||||||
Stockholders' equity (deficit): | ||||||||
Preferred stock, 5,700,000 shares authorized, | - | - | ||||||
Series A Convertible Preferred stock, 4,300,000 shares authorized | - | - | ||||||
Common stock, | 766 | 765 | ||||||
Additional paid-in capital | 6,279 | 6,253 | ||||||
Accumulated deficit | (4,293 | ) | (4,188 | ) | ||||
Total stockholders' equity | 2,752 | 2,830 | ||||||
Total liabilities and stockholders' equity | $ | 9,076 | $ | 9,131 | ||||
Consolidated Statement of Cash Flow
Nine Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
(in thousands) | ||||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | (104 | ) | $ | (190 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 324 | 307 | ||||||
Stock-based compensation expense | 27 | 10 | ||||||
Loss on sale of fixed asset | 7 | - | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | (359 | ) | (247 | ) | ||||
Inventory | (170 | ) | 733 | |||||
Prepaid expenses and other assets | 3 | (18 | ) | |||||
Accounts payable | 312 | (474 | ) | |||||
Accrued expenses and interest | 186 | 217 | ||||||
Operating lease liability | (388 | ) | (299 | ) | ||||
Amortization of operating lease asset | 366 | 294 | ||||||
Net cash provided by operating activities | $ | 203 | $ | 333 | ||||
INVESTING ACTIVITIES: | ||||||||
Investment in equipment, software, and leasehold improvements | $ | (34 | ) | $ | (52 | ) | ||
Net cash used in investing activities | $ | (34 | ) | $ | (52 | ) | ||
FINANCING ACTIVITIES: | ||||||||
Borrowing (repayment) under revolving line of credit | $ | (82 | ) | $ | 64 | |||
Repayment of unsecured line of credit | 54 | (10 | ) | |||||
Proceeds from unsecured notes payable | 241 | 200 | ||||||
Repayment of unsecured notes payable | - | (200 | ) | |||||
Payments on equipment notes | (282 | ) | (292 | ) | ||||
Principal payments on capital leases | (17 | ) | (12 | ) | ||||
Net cash used in financing activities | $ | (87 | ) | $ | (250 | ) | ||
Net increase in cash and cash equivalents | 82 | 31 | ||||||
Cash and cash equivalents at beginning of year | $ | 1,028 | $ | 1,041 | ||||
Cash and cash equivalents at end of period | $ | 1,110 | $ | 1,072 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid during the year for: | ||||||||
Interest | $ | 218 | $ | 275 | ||||
SUPPLEMENTAL FINANCIAL INFORMATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Reconciliation of Net Loss to Adjusted EBITDA income for the three and nine months ended March 31, 2025 and 2024:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net loss | $ | (88 | ) | $ | (94 | ) | $ | (105 | ) | $ | (191 | ) | ||||
Plus interest expense, financing costs and income tax | 88 | 135 | 269 | 357 | ||||||||||||
Plus depreciation and amortization expense | 107 | 104 | 324 | 307 | ||||||||||||
Plus stock-based compensation expense | 9 | 6 | 26 | 11 | ||||||||||||
Adjusted EBITDA | $ | 116 | $ | 151 | $ | 514 | $ | 484 | ||||||||
SOURCE: Luvu Brands, Inc.
View the original press release on ACCESS Newswire
FAQ
What were LUVU's key financial results for Q3 fiscal 2025?
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What strategic initiatives is LUVU implementing to drive growth?
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How is LUVU addressing supply chain challenges?
