Nova LifeStyle 1Q sales up 23%
May 28, 2015,
LOS ANGELES — Modern furniture source Nova LifeStyle reported a 23% increase in first-quarter sales to $22 million and sharply higher income of $1.6 million.
Sales to North America and China drove the increase, sparked by a higher average unit selling price, the company said.
Significant sales included repeat orders from Omaha, Neb.-based Nebraska Furniture Mart, to supply that company’s new Dallas-area store. The company also said it agreed during the first quarter to provide four additional SKUs to Ikea for its stores in China.
Sales to North America were up 34.6% from a year earlier to $15.1 million and sales to China were up 22.5% to $3.8 million, the company said. Sales to Europe were down 17% to $2.4 million because of the weak economy on the continent, officials said.
The increase in sales resulted from a 33% rise in average selling price with a 13% decrease in sales volume, Nova said.
Operating income rose to $900,000 from $550,000 a year earlier, the company said. The bottom line also benefited from a $972,645 gain in the change of fair value of a warrant liability, officials said. That helped increase net income to $1.6 million from $300,000 in the prior year’s first quarter.