LOS ANGELES, July 06, 2020 (GLOBE NEWSWIRE) -- Nova Lifestyle, Inc. ( NVFY) (Nova LifeStyle or the Company) today announced financial results for the first quarter ended March 31, 2020.
Key Financial Highlights:
- Net sales for three months ended March 31, 2020 were $2.2 million, a decrease of 75% from $8.7 million in the same period of 2019.
- Net loss for the three months ended March 31, 2020 was $(1.3) million, as compared to a loss of $(147,000) in the same period of 2019.
The Company experienced significant adverse impacts of COVID-19 and the related public health orders. The Companys two showrooms and warehouse in Kuala Lumpur have been closed since March 18, 2020. The Los Angeles facility has been closed since March 16, 2020. However, a skeleton staff worked in that facility to receive shipping containers of products delivered from the Companys contract manufacturers and to ship products to customers. On May 12, 2020, the Company's Kuala Lumpur office reopened for business. The third-party contract manufacturers that the Company utilizes in China were closed from the beginning of the Lunar New Year Holiday through the beginning of March. Certain of the Companys new products are being sourced from manufacturers in India and Malaysia starting in 2020. The factories in India and Malaysia have suspended their operations as a result of the COVID-19 pandemic during March through early May 2020. Currently, the factories in both countries have resumed their operations. Finally, the Company expects that the impact of the COVID-19 outbreak on the United States and world economies will have a material adverse impact on the demand for its products.
Tawny Lam, Chairperson and Chief Executive Officer of Nova LifeStyle, stated During these unprecedented times, our priority has been to safeguard the health and safety of our employees while working closely with our customers that required delivery of products. The global COVID-19 pandemic has caused challenges throughout industry, from manufacturing to logistics, but we believe we remain financially healthy with our strong balance sheet and inventory levels that we believe will allow us to serve our customers and fulfill all orders as the pandemic subsides and the economy begins to pick up.
About Nova LifeStyle
Nova LifeStyle, Inc. is a well-established, innovative designer and distributor of modern lifestyle furniture; primarily sofas, dining room furniture, cabinets, office furniture and related components, bedroom furniture, and various accessories, in matching collections. Nova LifeStyles product lines include the Nova Brands and Diamond Sofa (www.diamondsofa.com). Nova's products feature urban contemporary styles that integrate comfort and functionality, incorporating upscale luxury designs which appeal to middle and upper middle-income consumers in the USA, China, Europe, and elsewhere in the world.
Visit Nova LifeStyle's website at www.NovaLifeStyle.com.
This press release may contain 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 ability to fully resume our operations and remain financially healthy, our expected future growth prospects. 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, 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.