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Luvu Brands Inc (LUVU)
OTHER OTC:LUVU
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Luvu Brands
(OTC:LUVU)
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Rating:47Neutral
Price Target:
$0.05
▲(12.50% Upside)
Luvu Brands' overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative cash flows. While technical analysis shows short-term positive momentum, overbought conditions pose risks. The poor valuation further weighs down the score, with a negative P/E ratio and no dividend yield.
Positive Factors
Revenue Growth
The recent positive trend in revenue growth suggests that Luvu Brands is expanding its market reach and product adoption, which could enhance long-term business stability and growth potential.
Product Innovation
Continued focus on product innovation helps Luvu Brands maintain competitive advantage and customer loyalty, driving sustainable revenue growth over the long term.
Market Reach
By leveraging strategic partnerships, Luvu Brands can access broader markets and increase sales channels, supporting sustained revenue growth and market presence.
Negative Factors
High Leverage
High leverage poses financial risk, potentially limiting Luvu Brands' ability to invest in growth opportunities and weather economic downturns, impacting long-term financial stability.
Negative Cash Flows
Negative cash flows suggest liquidity challenges, which can constrain Luvu Brands' operational flexibility and ability to invest in growth, affecting long-term viability.
Declining Profitability
Declining profitability indicates operational inefficiencies and challenges in cost management, which may hinder Luvu Brands' ability to sustain growth and improve shareholder value over time.
Luvu Brands (LUVU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.21M
Dividend YieldN/A
Average Volume (3M)61.79K
Price to Earnings (P/E)―
Beta (1Y)0.08
Revenue Growth2.37%
EPS Growth23.81%
CountryUS
Employees192
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)N/A
Shares Outstanding76,834,060
10 Day Avg. Volume175,295
30 Day Avg. Volume61,791
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)1.71
Price to Sales (P/S)0.17
P/FCF Ratio-9.15
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Luvu Brands Business Overview & Revenue Model
Company DescriptionLuvu Brands, Inc. designs, manufactures, and markets various wellness, lifestyle, and casual seating products worldwide. The company offers Liberator, a brand category of products for enhancing sexual performance; and bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand; and medical isolation gowns and face masks. In addition, the company is involved in the purchase and resale of products to retailers, e-commerce sites, and single retail stores, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.
How the Company Makes MoneyLuvu Brands generates revenue through multiple streams primarily centered around the sales of its proprietary products. The company sells its adult novelty items and wellness products through various channels, including direct-to-consumer sales via its e-commerce platforms, wholesale distribution to retailers, and partnerships with online marketplaces. Key revenue streams include product sales from its flagship brand Liberator, which features a variety of intimate products designed for comfort and pleasure, as well as sales from other lifestyle brands under its umbrella. The company's strategic partnerships with retailers and online platforms enhance its market reach and revenue potential, while ongoing product innovation and marketing efforts contribute to customer engagement and sales growth.
Luvu Brands Earnings Call Summary
Earnings Call Date:May 16, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a period of significant challenges for Luvu Brands, with notable declines in overall sales and key product lines such as Liberator. However, there are positive developments in the Jaxx and Avana brands, gross margin improvements, and strategic initiatives for future growth, including international expansion and new brand introductions. Despite the current difficulties, the company is focused on returning to growth through innovation and market expansion.Q3-2024 Updates
Positive Updates
Jaxx Brand Growth
Jaxx product sales increased by 16% to $1.4 million in Q3 compared to $1.2 million in the same quarter of the prior year, showing steady progress with new e-commerce partners and categories.
Avana Product Sales Increase
Avana products saw a 5% increase in sales, reaching $686,000 in Q3 compared to $646,000 in the prior year.
Improved Gross Margin
Gross profit as a percentage of net sales increased to 28% from 26% in the prior year’s third quarter, attributed to improved raw material sourcing and reduced fulfillment costs.
International Expansion Plans
Active discussions with partners around the world are underway to increase the global footprint of Luvu Brands, with further announcements expected in the coming months.
New Brand Introduction
A new intimacy brand is planned for introduction later this year, aiming to access mass market distribution channels in drug and department stores, aligning with the emerging sexual wellness category.
Negative Updates
Overall Sales Decline
Net sales in Q3 decreased by 14% to $5.9 million compared to $6.9 million in the same quarter of the prior year, with a 18% decline for the 9 months ending March 31, 2024.
Liberator Brand Sales Drop
Sales of Liberator products decreased by 23% to $3.4 million in Q3, significantly impacting overall company performance.
Challenges in Retail Market
The decline in the retail market for pleasure products and increased competition from China-based knock-offs negatively affected sales.
EBITDA Decrease
Adjusted EBITDA for the 9 months ended March 31, 2024, was $448,000, down from $2,040,000 in the prior year, reflecting the sales decline and increased sales and marketing expenses.
Company Guidance
During the Luvu Brands Q3 2024 earnings call, the company reported a 14% decrease in net sales to $5.9 million for the quarter, and an 18% decrease to $18.8 million for the nine months ending March 31, 2024. The Liberator brand saw a significant 23% decline in sales, while Jaxx products experienced a 16% increase, and Avana products rose by 5%. Gross profit for the quarter was $1.6 million, down 7% from the previous year, with a gross margin increase from 26% to 28%. Adjusted EBITDA for the nine months was $448,000, reflecting an 18% sales decline and increased marketing expenses. Inventory was reduced by 17%, and working capital slightly decreased to $1.7 million. The company outlined strategies for growth, including product innovation, increased marketing efforts, and international expansion, aiming to return to top-line growth in the coming year.Luvu Brands Financial Statement Overview
Summary
Luvu Brands faces significant financial challenges with declining profitability, high leverage, and negative cash flows. While there are some positive revenue growth signs, the overall financial health is weak, requiring strategic improvements to enhance stability and profitability.Income Statement
Luvu Brands has shown inconsistent revenue growth with a recent positive trend, but profitability remains a concern. The gross profit margin is stable, yet the net profit margin is negative, indicating operational challenges. The EBIT and EBITDA margins have declined, reflecting reduced efficiency.45
Neutral
Balance Sheet
The company's balance sheet shows high leverage with a debt-to-equity ratio above 1.5, which poses financial risk. Return on equity is negative, suggesting poor profitability relative to shareholder investment. The equity ratio indicates a moderate level of equity financing.40
Negative
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, indicating liquidity issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, highlighting cash generation challenges.35
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.78M | 24.69M | 24.57M | 29.22M | 26.34M | 23.11M |
| Gross Profit | 6.61M | 6.47M | 6.53M | 7.19M | 6.00M | 6.30M |
| EBITDA | 573.00K | 359.00K | 586.00K | 2.24M | 1.55M | 2.36M |
| Net Income | -369.00K | -448.00K | -399.00K | 1.20M | 604.00K | 2.56M |
Balance Sheet | ||||||
| Total Assets | 8.82M | 8.76M | 9.13M | 10.61M | 10.38M | 10.25M |
| Cash, Cash Equivalents and Short-Term Investments | 818.00K | 735.00K | 1.03M | 1.04M | 859.00K | 977.00K |
| Total Debt | 3.68M | 3.81M | 4.17M | 4.87M | 5.20M | 5.56M |
| Total Liabilities | 6.52M | 6.34M | 6.30M | 7.40M | 8.43M | 8.92M |
| Stockholders Equity | 2.30M | 2.42M | 2.83M | 3.21M | 1.95M | 1.32M |
Cash Flow | ||||||
| Free Cash Flow | -502.00K | -451.00K | 404.00K | 546.00K | 335.00K | 330.00K |
| Operating Cash Flow | -462.00K | -410.00K | 475.00K | 661.00K | 387.00K | 540.00K |
| Investing Cash Flow | -40.00K | -41.00K | -71.00K | -115.00K | -52.00K | -210.00K |
| Financing Cash Flow | 252.00K | 158.00K | -417.00K | -364.00K | -453.00K | -505.00K |
Luvu Brands Technical Analysis
Neutral
0.04
Price Trends
0.04
Negative
0.04
Negative
0.04
Negative
Market Momentum
<0.01
Negative
50.64
Neutral
53.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUVU, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LUVU.
Luvu Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $226.43M | 10.33 | 14.28% | 1.77% | 6.00% | 64.58% | |
66 Neutral | $613.51M | 13.06 | 9.96% | 7.55% | -4.61% | -25.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
47 Neutral | $3.21M | -8.96 | -14.98% | ― | 2.37% | 23.81% | |
45 Neutral | $27.61M | -2.72 | -22.07% | 12.40% | -1.49% | -399.62% | |
42 Neutral | $26.38M | -1.30 | -39.95% | ― | -5.98% | -29.87% | |
42 Neutral | $229.94M | -6.07 | -126.29% | ― | -0.01% | 77.86% |
* Consumer Cyclical Sector Average
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Luvu Brands
0.04
-0.01
-20.00%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.