Luvu Brands Inc. (LUVU)

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$LUVU Looks like they had a great fy 2017, Net sales for the year were flatish + , but that was the first full quarter (Q4) since discontinuing their Japan adult business and I'm not sure how much support the Japan distribution provided during the weak quarter Q4.

Gonna hang on to see how the plan pans out.

Fiscal Year 2017 Highlights:

Record net sales of $16.9 million, an increase of .6% from the prior year.
Record gross profit of $4.9 million, an increase of $.7 million, or 17%, from the prior year.
$736,000 in income from operations, compared to income from operations of $147,000 in the prior year.
Net income of $203,000 compared to a net loss of $312,000 in the prior year.
Adjusted EBITDA of $975,000, a 139% increase from $408,000 in the prior year.
Management Commentary

"During fiscal 2017 we experienced strong growth in sales of our manufactured products, including a 52% increase in Jaxx and Avana branded products, and a significant improvement in our gross profit margins," said Luvu Brands President and CEO, Louis Friedman. "Our focus in fiscal 2018 is on continuing to improve our production efficiencies and gross profit margins and ramping up production in order to keep pace with the continued strong demand", added Mr. Friedman.
https://www.otcmarkets.com/stock/LUVU/news/Luvu-Brands-Reports-Record-Net-Sales-and-Net-Income?id=171646&b=y


Jan 20, 2017
As part of this plan, and in an effort to reduce staff, shipping expense, inventory, and rationalize our SKU count, Mr. Friedman added, "By the end of January, 2017 we will phase-out and no longer distribute products from Tenga Japan, including their male pleasure products and personal massagers. For the three months ended December 31, 2016, sales of Tenga products resulted in $838,000 of revenues, a gross margin of $153,000 with an estimated net contribution of $86,000, after expenses. The termination of the Tenga relationship enables us to reallocate warehouse space, sales personnel and employees to focus on expanding the Liberator, Jaxx and Avana brands, which are sold at significantly higher gross margins than Tenga products."
https://www.otcmarkets.com/stock/LUVU/news/Luvu-Brands-Announces-Preliminary-Q2-Fiscal-2017-Results?id=149095&b=y