LOS ANGELES, May 15, 2024 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. (NASDAQ: NVFY) ("Nova LifeStyle" or the "Company") today announced financial results for the first quarter ended March 31, 2024.
Tawny Lam, Chairperson and Chief Executive Officer of Nova LifeStyle, stated, "It is with great pleasure that we announce financial and operating results that showed increases in revenues, sales volume and higher gross profit margins. We continue to collaborate with our customers to ensure we provide furniture that meets their needs with respect to design, functionality and trends, while also working with manufacturers and suppliers on a consistent basis resulting in product availability and maintaining satisfactory inventory levels."
Key Financial Highlights:
- Net sales for the three months ended March 31, 2024 were $2.38 million, an increase of 27% from $1.87 million for the same period of 2023. This increase in net sales resulted primarily from a 30% increase in sales volume while partially offset by 3% decrease in average selling price. Our three largest selling product categories for the three months ended March 31, 2024 were sofas, beds and chairs, which accounted for approximately 53%, 12% and 8% of sales, respectively.
- Gross profit was $1.02 million for the three months ended March 31, 2024, compared to $0.66 million for the same period of 2023, representing an increase in gross profit of $0.35 million. Our gross profit margin was 43% for the three months ended March 31, 2024, compared to 35% for the same period of 2023. The increase in gross profit and gross profit margin was mainly a result of our increased sales of products with higher margins.
- Net loss was $1.46 million for the three months ended March 31, 2024, compared to $1.22 million for the same period of 2023, mainly due to increase in cost of sales and operating expenses.
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, South America, 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" 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
