Nova LifeStyle, Inc. Reports Third Quarter FY 2023 Results

Rhea-AI Summary

Nova LifeStyle, Inc. (NVFY) Announces Q3 2023 Financial Results with Net Sales Decrease and Improved Gross Profit. Chairperson and CEO Tawny Lam expresses commitment to delivering value amidst challenging markets, highlighting product demand and expansion plans.

Positive

• Chairperson and CEO Tawny Lam's commitment to delivering value amidst challenging markets is a positive point, showcasing the company's resilience and adaptability.
• The stabilization of the Diamond Sofa brand and the expected growth, as well as the exploration of expanding the company's footprint in Europe and other international markets, are positive indicators of potential future revenue growth and market expansion.

Negative

• The decrease in net sales for both the three and nine months ended September 30, 2023, compared to the same periods in 2022, is a negative point that indicates a decline in revenue generation.
• The net loss for the nine months ended September 30, 2023, is a negative indicator of the company's financial performance, despite the improvement in gross profit.

LOS ANGELES, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Company”) today announced its financial results for the third quarter ended September 30, 2023.

Key Financial Highlights:
Operating Results for the Three Months Ended September 30, 2023

• Net sales for three months ended September 30, 2023 were $2.5 million, a decrease of 18% from $3.0 million in the same period of 2022.
• Gross profit was $1.1 million compared to $1.1 million in the same period of 2022.
• Net loss was ($1.3 million), compared to ($1.7 million) loss in the same period of 2022.
  

Operating Results for the Nine Months Ended September 30, 2023

• Net sales for the nine months ended September 30, 2023 were $8.8 million, a decrease of 16% from $10.5 million in the same period 2022.
• Gross profit was $3.2 million, compared to ($900 thousand) loss in the same period of 2022.
• Net loss was ($3.0 million), compared to ($8.3 million) loss in the same period of 2022.
  

Tawny Lam, Chairperson and Chief Executive Officer of Nova LifeStyle, stated, "As we continue to navigate through some challenging markets which included higher interest rates and inflation, we are committed to delivering value for our shareholders and partners. I am pleased with our efforts in designing and distributing product lines that are in demand and based on consumers wants and needs. We are excited to see customers respond positively to our products as we continue to provide compelling pricing and faster delivery times through our inventory management.”

“We believe our Diamond Sofa brand, which has a thirty-year history, has stabilized and we expect growth to occur as we finish the year and begin planning for 2024. We are also exploring expanding our footprint in Europe and other international markets regarding selling furniture to distributors and retailers wherein they offer our products under their own brand names,” concluded Ms. Lam.

About Nova LifeStyle

Nova LifeStyle, Inc. is a well-established, innovative designer and distributor of modern lifestyle furniture; primarily sofas, dining room furniture, cabinets, office furniture and related components, bedroom furniture and various accessories, in matching collections. Nova LifeStyle’s product lines include the Nova Brands and Diamond Sofa (www.diamondsofa.com). Nova's products feature urban contemporary styles that integrate comfort and functionality, incorporating upscale luxury designs which appeal to middle and upper middle-income consumers in the USA, China, Southeast Asia, and elsewhere in the world.

Visit Nova LifeStyle's website at www.NovaLifeStyle.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to fully resume our operations and remain financially healthy, our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory,” “focus,” “work to,” “attempt,” “pursue,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

Investor Relations Contact
Andrew Barwicki
516-662-9461
andrew@barwicki.com
ir@novalifestyle.com

What were Nova LifeStyle's net sales for the three months ended September 30, 2023?

The net sales for the three months ended September 30, 2023, were $2.5 million, reflecting an 18% decrease from the same period in 2022.

What is the gross profit for Nova LifeStyle in the nine months ended September 30, 2023?

The gross profit for the nine months ended September 30, 2023, was $3.2 million, representing a significant improvement from the same period in 2022.

What are Nova LifeStyle's expansion plans?

Chairperson and CEO Tawny Lam expressed plans to explore expanding the company's footprint in Europe and other international markets, indicating potential future growth opportunities.

How did the net loss for Nova LifeStyle change in the nine months ended September 30, 2023, compared to the same period in 2022?

The net loss for the nine months ended September 30, 2023, improved to ($3.0 million) from a loss of ($8.3 million) in the same period of 2022, showcasing a positive trend in financial performance despite the overall loss.