Luvu Brands Reports 1.5% Increase in Net Sales to $5.84 Million for Q3 2025

Luvu Brands, Inc. reported a modest increase in net sales for the three months ending September 30, 2025, reaching approximately $5.84 million, a 1.5% rise from $5.76 million in the same period last year. The company's gross profit also improved, rising to $1.66 million, which translates to a gross margin of 28%, up from 26% in the prior year. This increase in gross profit was attributed to lower costs for raw materials sourced from international vendors. However, the company still faced a net loss of $131,000, a reduction from the $210,000 loss reported in the same quarter of 2024, indicating a slight improvement in profitability.

Operating expenses for the quarter were approximately $1.67 million, representing 29% of net sales, compared to 28% in the previous year. The increase in operating expenses was primarily due to higher advertising and promotional costs. Interest expenses also rose to $116,000 from $88,000, largely due to new notes payable issued to support working capital and inventory needs. Despite these challenges, the company managed to generate $80,000 in cash from operating activities, although this was a decrease from $132,000 in the same quarter last year.

In terms of operational developments, Luvu Brands continues to expand its distribution channels both domestically and internationally, although wholesale sales saw a decline of 3% due to increased competition from low-cost international manufacturers. The company reported that sales through its branded websites increased by 11%, driven by stronger performance in the outdoor product category. As of September 30, 2025, Luvu Brands had total assets of $8.82 million, with current liabilities amounting to $5.28 million, reflecting a slight increase in both categories compared to the previous quarter.

The company’s cash and cash equivalents stood at $818,000, up from $735,000 at the end of June 2025. Luvu Brands has also maintained a stable employee headcount, with no significant changes reported. The company continues to monitor market conditions and is prepared to adjust its strategies as necessary, particularly in response to potential increases in raw material costs due to tariffs. Looking ahead, Luvu Brands anticipates that its ongoing efforts to enhance product offerings and expand market reach will support future growth, although it acknowledges the potential for fluctuations in operating results due to various external factors.