Education
About Us
Working with TipRanks
Follow Us
Luvu Brands Inc (LUVU)
OTHER OTC:LUVU
Top Page
Luvu Brands
(OTC:LUVU)
Select Model
Select Model
Rating:51Neutral
Price Target:
$0.00
▼(-100.00% Downside)
Luvu Brands faces significant financial challenges with negative profitability and high leverage, reflected in a low valuation score. Technical analysis shows some short-term bullish momentum, but the risk of overbought conditions tempers enthusiasm. The absence of earnings call guidance or notable corporate events limits additional insights.
Luvu Brands (LUVU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.94M
Dividend YieldN/A
Average Volume (3M)23.50K
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth-1.72%
EPS Growth33.87%
CountryUS
Employees192
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding76,834,060
10 Day Avg. Volume11,935
30 Day Avg. Volume23,502
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)2.30
Price to Sales (P/S)0.26
P/FCF Ratio16.11
Enterprise Value/Market Cap2.42
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda11.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
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 primarily through the sale of its products, which include a variety of wellness and lifestyle items. The company's key revenue streams are its Liberator and Jaxx product lines. It sells these products directly to consumers through its e-commerce platforms and retail partners. Additionally, Luvu Brands benefits from its vertically integrated manufacturing process, which allows it to control costs and maintain quality. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, contributing to its overall earnings.
Luvu Brands Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 01, 2025
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 is experiencing revenue and profitability challenges, with negative net margins and ROE. While gross margin and operating cash flow are reasonable, high leverage and negative free cash flow growth are concerning. Improvement in revenue stability and operational efficiency is needed.Income Statement
The company's gross profit margin for TTM is 26.9%, reflecting reasonable cost control relative to revenue. However, the net profit margin is negative, at -1.3%, indicating profitability challenges. Revenue has declined by 16% compared to the previous year, highlighting a concerning trend in revenue growth. EBIT and EBITDA margins are also low, at 0.7% and 2.5% respectively, suggesting operational efficiency issues.45
Neutral
Balance Sheet
The debt-to-equity ratio stands at 1.34, indicating a moderate level of leverage. The return on equity is negative at -11.4%, primarily due to net losses, which is concerning for shareholders. However, the equity ratio is 30.3%, suggesting a balanced approach to financing assets through equity.50
Neutral
Cash Flow
Free cash flow has declined compared to the previous year, showing a negative growth rate of -27.7%. However, the operating cash flow to net income ratio is promising at 1.10, indicating strong cash generation relative to net income. The free cash flow to net income ratio is negative due to net losses, which poses a risk to financial flexibility.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.53M | 24.57M | 29.22M | 26.34M | 23.11M | 18.38M |
| Gross Profit | 6.59M | 6.53M | 7.19M | 6.00M | 6.30M | 5.53M |
| EBITDA | 609.00K | 586.00K | 2.24M | 1.55M | 2.36M | 1.60M |
| Net Income | -313.00K | -399.00K | 1.20M | 604.00K | 2.56M | 860.00K |
Balance Sheet | ||||||
| Total Assets | 9.08M | 9.13M | 10.61M | 10.38M | 10.25M | 5.45M |
| Cash, Cash Equivalents and Short-Term Investments | 1.11M | 1.03M | 1.04M | 859.00K | 977.00K | 1.15M |
| Total Debt | 3.70M | 4.17M | 4.87M | 5.20M | 5.56M | 3.66M |
| Total Liabilities | 6.32M | 6.30M | 7.40M | 8.43M | 8.92M | 6.72M |
| Stockholders Equity | 2.75M | 2.83M | 3.21M | 1.95M | 1.32M | -1.27M |
Cash Flow | ||||||
| Free Cash Flow | 292.00K | 404.00K | 546.00K | 335.00K | 330.00K | 140.00K |
| Operating Cash Flow | 345.00K | 475.00K | 661.00K | 387.00K | 540.00K | 367.00K |
| Investing Cash Flow | -53.00K | -71.00K | -115.00K | -52.00K | -210.00K | -227.00K |
| Financing Cash Flow | -255.00K | -417.00K | -364.00K | -453.00K | -505.00K | 363.00K |
Luvu Brands Technical Analysis
Negative
0.04
Price Trends
0.04
Negative
0.04
Negative
0.05
Negative
Market Momentum
>-0.01
Negative
35.08
Neutral
28.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUVU, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $704.61M | 13.76 | 10.69% | 6.83% | -4.89% | -19.26% | |
67 Neutral | $223.17M | 11.92 | 12.67% | 1.75% | 6.86% | 88.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $30.43M | 13.58 | -22.90% | 11.00% | -0.24% | -336.30% | |
51 Neutral | $2.94M | ― | -10.83% | ― | -1.72% | 33.87% | |
46 Neutral | $30.84M | ― | -30.18% | ― | -5.41% | -21.60% | |
42 Neutral | $186.96M | ― | -126.29% | ― | -0.01% | 77.86% |
* Consumer Cyclical Sector Average
LUVU
Luvu Brands
0.04
-0.03
-42.86%
CRWS
Crown Crafts
2.91
-1.50
-34.01%
ETD
Ethan Allen
28.08
0.24
0.86%
FLXS
Flexsteel
43.45
3.41
8.52%
NTZ
Natuzzi SPA
2.87
-1.43
-33.26%
NVFY
Nova Lifestyle
5.53
4.18
309.63%
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.