Nova Lifestyle Inc. (NASDAQ: NVFY) lost 27.38% at the end of last week after trading on a heavy volume of around 3.93 million, which is higher than the daily average volume of 370,914. The day’s range was $4.29 to $4.9. Recently the company released its Q1 2021 financial results for the period ended March 31, 2021.
Nova Lifestyles reports net sales of $3.3 in Q1 2021
The company reported net sales of $3.3 million, representing a 51% YoY increase relative to Q1 2020’s net sales of $2.2 million. On the other hand, continuing operations net loss for the three months ended March 31, 2021, was $763,537 relative to a continuing operations net loss of $1.01 million.
Nova LifeStyle CEO and Chairman Tawny Lam said, “Our strategy as we entered into 2021 was to get back to business operations at pre-pandemic levels as quickly as possible. While we are not there just yet and we believe the pandemic continues to impact our operations, our sales growth reflects the strength and commitment of our organization and the partnerships we have.”
Nova LifeStyle’s manufacturing strategy helping it grow its profit margin
The company’s strategy to produce and sell high-margin products is paying off, and the company reported gross profit margin growth of 41% in Q1 2021, up from 35% in Q1 2020. Equally, the company managed to reduce its net loss to $763,537 thanks to the execution of its manufacturing strategy.
Tawny added, “We will continue to focus on our sales channels, including our commitment to meeting customers’ needs by delivering high quality and differentiated products. We also believe the investments we made over the last year, including having a good amount of inventory, allows us to better serve our customers with product availability and quick service.”
