Stock in Wall Street Spotlight: Nova LifeStyle, Inc. (NASDAQ: NVFY)

Nova LifeStyle, Inc. (NASDAQ: NVFY) changed 10.42% to recent value of $1.33. The stock transacted 29637 shares during most recent day however it has an average volume of 17.51K shares. It spotted trading -69.89% off 52-week high price. On the other end, the stock has been noted 100.76% away from the low price over the last 52-weeks.

Nova Lifestyle, Inc. (NVFY) recently reported financial results for the first quarter ended March 31, 2020.

Key Financial Highlights:

Net sales for three months ended March 31, 2020 were $2.2M, a decrease of 75% from $8.7M in the same period of 2019.

Net loss for the three months ended March 31, 2020 was $(1.3)M, as contrast to a loss of $(147,000) in the same period of 2019.

The Company experienced important adverse impacts of COVID-19 and the related public health orders. The Company’s 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 Company’s contract manufacturers and to ship products to consumers. 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 startning of the Lunar New Year Holiday through the startning of March. Certain of the Company’s 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. Presently, 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 consumers 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 consumers and fulfill all orders as the pandemic subsides and the economy starts to pick up.”

 NVFY has a gross margin of 5.90% and an operating margin of -26.30% while its profit margin remained -39.10% for the last 12 months. Its earnings per share (EPS) expected to touch remained -217.20% for this year.  The company has 5.67M of outstanding shares and 3.44M shares were floated in the market. According to the most recent quarter its current ratio was 46.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of 18.69% from the mean of 20 days, 20.16% from mean of 50 days SMA and performed -37.61% from mean of 200 days price. Company’s performance for the week was 17.26%, 17.78% for month and YTD performance remained -28.38%.

 

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