Luvu Brands (Luvu Brands) Gross Margin % : 26.79% (As of Dec. 2023)

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What is Luvu Brands Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Luvu Brands's Gross Profit for the three months ended in Dec. 2023 was $1.82 Mil. Luvu Brands's Revenue for the three months ended in Dec. 2023 was $6.79 Mil. Therefore, Luvu Brands's Gross Margin % for the quarter that ended in Dec. 2023 was 26.79%.

Warning Sign:

Luvu Brands Inc gross margin has been in long-term decline. The average rate of decline per year is -3.8%.

The historical rank and industry rank for Luvu Brands's Gross Margin % or its related term are showing as below:

LUVU' s Gross Margin % Range Over the Past 10 Years
Min: 22.78 Med: 26.1 Max: 30.07
Current: 24.14

During the past 13 years, the highest Gross Margin % of Luvu Brands was 30.07%. The lowest was 22.78%. And the median was 26.10%.

LUVU's Gross Margin % is ranked worse than
65.53% of 409 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.42 vs LUVU: 24.14

Luvu Brands had a gross margin of 26.79% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Luvu Brands was -3.80% per year.

Luvu Brands Gross Margin % Historical Data

The historical data trend for Luvu Brands's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Luvu Brands Gross Margin % Chart

Luvu Brands Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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26.02

30.07

27.27

22.78

24.61

Luvu Brands Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															27.77	25.63	19.46	24.20	26.79

Competitive Comparison of Luvu Brands's Gross Margin %

For the Furnishings, Fixtures & Appliances subindustry, Luvu Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Luvu Brands's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Luvu Brands's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Luvu Brands's Gross Margin % falls into.

Luvu Brands Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Luvu Brands's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	7.2	/	29.219
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(29.219 - 22.027)	/	29.219
	=	24.61 %

Luvu Brands's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1.8	/	6.786
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6.786 - 4.968)	/	6.786
	=	26.79 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Luvu Brands (OTCPK:LUVU) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Luvu Brands had a gross margin of 26.79% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Luvu Brands Gross Margin % Related Terms

Thank you for viewing the detailed overview of Luvu Brands's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Luvu Brands (Luvu Brands) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Luvu Brands Inc (OTCPK:LUVU) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2745 Bankers Industrial Drive, Atlanta, GA, USA, 30360

Website

https://www.luvubrands.com

Luvu Brands Inc designs, manufactures, and markets a portfolio of consumer lifestyle brands including Liberator, a brand category of iconic products for enhancing sensuality and intimacy; Avana, inclined bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain; and Jaxx, a diverse range of casual fashion daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam. It conducts its business through three primary sales channels: Direct, Wholesale, and Others. The brands of the company involve Avana, Liberator, Jaxx, Panelist, CreAtl and Zipline.

Executives

Martin P Scott	officer: Chief Financial Officer	SIMPLEPONS, INC., C/O 220 CONGRESS PARK DRIVE, SUITE 304, DELRAY BEACH FL 33445
Alexander A. Sannikov	officer: Chief Financial Officer	2745 BANKERS INDUSTRIAL DR, ATLANTA GA 30360
Ronald P Scott	director, officer: CFO & Secretary	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Manuel Munoz	officer: Chief Information Officer	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Louis S Friedman	director, officer: President & CEO	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Sean Hougham	officer: Vice President - Manufacturing	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Donald Cohen	10 percent owner	2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
James Blanchard	officer: Senior VP-Business Development	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Michael Kane	officer: Executive Vice President	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Leslie Vogelman	officer: Treasurer	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Rufina Bulatova	officer: Vice President Online Market.	2745 BANKERS INDUSTRIAL DRIVE, ATLANTA GA 30360
Fyodor Petrenko	10 percent owner, officer: Vice President	204 SALEM CT, APT 5, PRINCETON NJ 08540
David Wirth	officer: Vice President - Operations	2745 BANKERS INDUSTRIAL DRIVE, DORAVILLE GA 30360
Belmont Partners, Llc	10 percent owner	360 MAIN STREET, P.O. BOX 393, WASHINGTON VA 22747
Joseph J Meuse	director, officer: President	211 FALMOUTH STREET, WARRENTON VA 20186