Luvu Brands Reports 6% Increase in Net Sales for Q2 Fiscal Year 2025

Luvu Brands, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a net sales increase of 6% to $7.186 million compared to $6.786 million in the same period last year. The company’s gross profit for the quarter rose to $1.982 million, up from $1.818 million, resulting in a gross margin of 28%, an increase from 27% year-over-year. For the six months ended December 31, 2024, total net sales were $12.941 million, a slight increase of 0.2% from $12.912 million in the prior year. The company reported a net income of $193,000 for the quarter, a significant improvement from the $29,000 net income recorded in the same quarter of the previous year.

In terms of operational performance, Luvu Brands experienced notable changes in its product sales. Sales of its Liberator brand increased by 9% to $4.235 million, driven by stronger online sales. Jaxx product sales also saw a 12% increase, reaching $2.023 million. However, Avana product sales declined by 20% to $548,000, attributed to competitive pricing pressures and production constraints. The company’s focus on expanding its online third-party drop ship business is expected to help recover sales in this category. Overall, the company’s operating expenses for the quarter were approximately $1.691 million, representing 24% of net sales, a slight decrease from 25% in the prior year.

Luvu Brands' balance sheet as of December 31, 2024, showed total assets of $9.486 million, up from $9.131 million at the end of the previous fiscal period. Current liabilities increased to $5.361 million from $4.177 million, primarily due to higher accounts payable and current debt. The company’s cash and cash equivalents rose to $1.349 million, compared to $1.213 million a year earlier. The total stockholders' equity remained stable at $2.830 million, with an accumulated deficit of $4.206 million.

The company continues to focus on strategic initiatives to enhance its market position. Luvu Brands has been actively developing its marketing efforts, particularly in the special education market for Jaxx products. Additionally, the company has engaged Christopher Knauf as Chief Financial Officer, further strengthening its leadership team. The company’s operational strategies include leveraging its e-commerce platforms and expanding product assortments to drive sales growth.

Looking ahead, Luvu Brands anticipates continued fluctuations in operating results due to various factors, including competition, seasonality, and changes in consumer demand. The company remains committed to improving its financial performance and operational efficiency, with a focus on enhancing its product offerings and expanding its market reach. Management believes that cash flows generated from operations, along with available borrowing capacity, will be sufficient to meet its capital requirements and support future growth initiatives.