Bryan Robson's questions to Luvu Brands (LUVU) leadership • Q1 2023
Question
Bryan Robson of Breakout Investors inquired about Luvu Brands' sales growth momentum for the current quarter (Q2) following a strong Q1, the company's capacity to meet potentially significant demand, the status of the Netflix show's renewal, strategies for customer retention, and the outlook for gross margins.
Answer
Sales Director Jordan Friedman and CEO Louis Friedman confirmed their confidence in delivering strong Q2 results, stating the company is well-positioned with inventory and new products to handle demand up to $10 million per quarter. They also confirmed the Netflix show's renewal. Regarding customer value, they highlighted a 30% repeat customer rate driven by robust email marketing. On margins, CFO Alexander Sannikov noted that recent investments in machinery, like the Eton 3 conveyor line, are expected to improve efficiency and margins in future quarters.