Nova LifeStyle Announces Fiscal 2022 Results and Outlook for 2023
April 17 2023 - 5:27PM
Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the
“Company”) today announced financial results for the fiscal year
ended December 31, 2022.
Tawny Lam, Chairperson and Chief Executive Officer of Nova
LifeStyle, stated, “During 2022 we took a number of initiatives to
ensure our product lines were marketed effectively throughout the
globe, in the face of supply chain challenges and unprecedented
spikes in international container freight costs. Our efforts
focused on developing scalable, efficient growth and improving the
day-to-day operations and we are committed to improve operational
efficiencies while focusing on inventory and cash management.”
Financial Results for the Year
Ended December 31, 2022:
- Net sales from continuing operations
for the year ended December 31, 2022 were $12.74 million, an
increase of 2% from $12.56 million in 2021. This increase in net
sales resulted primarily from a 13% increase in average selling
price, partially offset by a 10% decrease in sales volume.
- Gross loss from continuing
operations was $7.78 million for the year ended December 31, 2022,
compared to gross profit of $5.52 million for 2021, representing a
decrease in gross profit of $13.30 million. Our gross loss margin
was 61% for the year ended December 31, 2022, compared to a gross
profit margin of 44% for 2021. The decrease in gross profit and
gross profit margin, was mainly the result of our inventory write
down of $12.90 million in 2022, primarily related to jade mat
inventory in the discontinued Malaysia operation.
- Net loss in Fiscal 2022 was $17.10
million, as compared to $19.96 million loss in 2021.
Outlook for 2023
There are several developments that we believe will have a
positive impact on our 2023 operating results:
- During 2023 we have become
increasingly active in the staging sector of our business. Staging
is the process of designing and filling a home with aesthetically
pleasing furniture, accessories, and décor. We are working
diligently to increase sales in the staging distribution channel,
because staging sales tend to be characterized by higher gross
margins than sales in other sectors.
- We recently entered into
arrangements to market our products on walmart.com and Slumberland.
While we are in the early stages of these relationships, we are
very excited about the promise that they represent.
- International container shipping
costs have returned to Pre-Covid levels which we expect will
positively affect our gross margin.
“We continue to explore new product line opportunities and work
with our partners to ensure we gain market share through pricing
and distribution channels. 2022 was an important year for us as
Diamond Sofa's celebrated 30 years in the home furnishings
industry. We launched our 30th Anniversary Collection and a
112-page product catalog featuring engaging new introductions
including the Muse collection - an upholstery group utilizing
performance fabric, a first in the Company's history,” stated Ms.
Lam.
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, jade mats 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 StatementsThis document
includes 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 expected future growth prospects, our ability to
capitalize on future market opportunities, and our exploration of
acquisition opportunities. 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,” “promise,” “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. All
forward-looking statements attributable to us are expressly
qualified in their entirety by this cautionary notice, including,
without limitation, those risks and uncertainties described in our
annual report on Form 10-K for the year ended December 31,
2022 and our other reports and filings with SEC.
Investor Relations Contact
Andrew
Barwicki516-662-9461andrew@barwicki.comir@novalifestyle.com
Nova Lifestyle (NASDAQ:NVFY)
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