Nova LifyStyle, Inc. (NASDAQ:NVFY) opened the market moving positively this morning, as its Q2 earnings were just released. The leading US innovative distributor and designer of home products announced today solid financial results for its second quarter, ending on June 30th, 2018.
Nova LifeStyle Q2 Results
In Nova LifeStyle’s second quarter of 2018, the company saw a net income increase of 150%, compared to its Q2 2017 results. Nova LifeStyle reported $1.4 million in net income this past quarter or $0.05 per diluted share. In Q2 2017, the company reported a net income of $0.6 million or $0.02 per diluted share.
NVFY’s revenue increased by 24% compared to its Q2 2017 numbers. The company brought in $24.1 million compared to the $19.5 million brought in the previous year.
In Q2 2018, Nova Lifestyle brought in $4.2 million in gross profit, up 21.1%. The previous year, the company brought in $3.5 million in gross profit.
Nova LifeStyle, Inc. entered into the proprietary designed office furniture market this past quarter. The company’s average selling prices (ASPs) rose by almost 20%, and it was driven by high margin household products.
The company’s best selling and most profitable products this past quarter were Sofas, TV cabinets, and beds. Sofas made up about 53% of the total revenue with TV cabinets coming in behind it at 20% of the revenue. Beds only made up 8% of the company’s revenue for Q2 2018.
Q1 & Q2 2018 Financial Highlights
In six months, Nova LifeStyle brought in a net income of $3.0 million compared to its Q1 and Q2 of 2017, that results in a net loss of $0.7 million. The company’s revenue increased 23.5% to $46.4 million compared to last year’s $37.6 million.
The balance sheet was well-positioned at approximately $2.60 per share in net assets to end this last month.
NVFY Stock Movement
When the market opened this morning, NVFY saw a slight boost in its share prices, but has since corrected and is trading in the red. According to Yahoo Finance, NVFY is trading at $1.75 a share, down $-0.08 (-4.37%).
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