Financial Results for the Year Ended
- 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 endedDecember 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 endedDecember 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 discontinuedMalaysia 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
About Nova LifeStyle
Visit Nova LifeStyle's website at www.NovaLifeStyle.com.
Forward-Looking Statements
This 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
516-662-9461
andrew@barwicki.com
ir@novalifestyle.com
Source:
2023 GlobeNewswire, Inc., source