Luvu Brands, Inc. (OTCQB:LUVU), a designer, manufacturer, and marketer of a portfolio of consumer lifestyle brands, announced today its financial and operational results for the full year ending June 30, 2024.

For the 12 months ended June 30, 2024 overview:

• Full year net revenue decreased 16% to $24.5 million versus a year ago.

• Full year gross margin improved to 27% from 25% a year ago.

• Full year net loss of $399,000, or $0.01 per basic and diluted share.

• Full year adjusted EBITDA of $612,000 was down 69% from a year ago.

• Inventory at June 30, 2024 of $3.3 million, representing a decrease of 22% versus a year ago.

• As of June 30, 2024, the Company had $1.03 million of cash and cash equivalents, which was flat compared to a year ago.

Louis Friedman, Chairman and Chief Executive Officer, acknowledged the challenges faced during FY2024. He cited declining consumer sentiment due to macroeconomic, extreme weather impacts, and geopolitical instability as a headwind affecting sales. Additionally, the absence of the significant marketing event of the Netflix show, "How to Build a Sex Room," in FY2024 impacted Liberator product sales. To counter this decline, the company increased digital advertising spending and successfully engaged online influencers.

Twelve Month Operating Results

• Adjusted EBITDA in FY 2024 was $612,000 compared to $1.95 million in FY 2023.

Friedman added, "As we focus on reinvigorating our products and brands, we are encouraged by the strong consumer response to our recent influencer success. This makes us confident that our fresh, updated product collections coming to market over the next year will build on that success. We believe the combination of elevated product, good storytelling, and superior customer experience in the coming year will position the business to return to top-line growth in 2025 and enable us to build long-term shareholder value."

Friedman emphasized Luvu Brands' commitment to cost control and maximizing sales growth. The company aims to return to growth in the coming year by exploring the following strategies:

1. Diversification of Product Lines: Luvu Brands recognizes the need to diversify its product offerings beyond the Liberator brand. While Liberator has been a cornerstone of our success, we aim to explore new lifestyle categories and create innovative products that resonate with a broader customer base. Our research and development team is actively working on identifying trends and consumer preferences to guide our expansion.

2. International Expansion: The global market presents significant growth opportunities. We plan to expand our presence beyond the United States by strategically entering new markets. This involves understanding cultural nuances, adapting our marketing approach, and establishing strong distribution networks. Our goal is to become a recognized brand worldwide.

3. Digital Transformation: In an increasingly digital world, we're committed to enhancing our online presence. This includes optimizing our e-commerce platform, improving user experience, and leveraging data analytics to personalize customer interactions. We'll also explore partnerships with online marketplaces and influencers to amplify our reach.

4. Strategic Marketing Collaborations: Building on our successful influencer campaigns, we'll continue to collaborate with key influencers and thought leaders. These partnerships allow us to tap into their engaged audiences and create authentic connections. Additionally, we'll explore co-branding opportunities and strategic alliances with complementary brands.

5. Customer-Centric Approach: Our customers are at the heart of everything we do. We'll invest in understanding their needs, preferences, and pain points. Regular feedback loops, surveys, and social listening will guide our product development and marketing efforts. By staying attuned to our audience, we can adapt swiftly to changing market dynamics.

6. Agile Supply Chain Management: To maintain cost efficiency and flexibility, we'll optimize our supply chain. This involves streamlining sourcing, improving inventory management, and minimizing lead times. Our operations team will focus on agility, ensuring we can respond swiftly to market demands and minimize disruptions.

7. Investment in Talent and Culture: Our employees drive our success. We'll invest in talent development, fostering a culture of innovation, collaboration, and continuous learning. By attracting top talent and nurturing their growth, we'll position ourselves for long-term success.

Louis Friedman, CEO, emphasizes that these strategies are essential for Luvu Brands' resilience and growth. As we navigate challenges, we remain committed to delivering quality products while adapting to an ever-evolving market landscape.