LOS ANGELES, CA - Expanded product offerings and supply agreements helped propel Nova LifeStyle's furniture business to double-digit sales growth for fiscal 2013.
Nova LifeStyle's (nasdaq-gm:'NVFY') fiscal 2013 net sales increased 18.2% to $78.3 million. Net sales for the fourth quarter grew 9.7%.
Nova LifeStyle President Tawny Lam attributed the company's success to: expansion of the product line with regards to living room and dining furniture; the introduction of its office furnishings line NOVA Qwik!; and increased global distribution through the acquisition of Bright Swallow, a supply agreement with IKEA, and relationships in England and Australia. "We also expanded our production capacity to accommodate current demand for our products as well as to support future growth," she said.
"In 2014 we remain focused on continued product innovation as well as expanding our presence globally through further penetration of existing channels of distribution and the addition of new ones. This includes the development of our own e-commerce platform aimed at the China market, which we believe will help diversify our customer base and end-user markets, and increase profitability in the long-term," Lam added. "We expect to benefit from many of the new supply agreements we have in place both in the near and the longer-term as well as from initiatives to improve profit margins, and expect to increase our net income in fiscal year 2014 over fiscal 2013."
In related news, on April 3 the residential furniture manufacturer and distributor announced a continuous supply agreement with Home Centre LLC, a home furnishings retailer based in Dubai.
This agreement marks Nova LifeStyle's entry into the Middle East region. According to the statement, Nova will supply Home Centre with dining room furniture manufactured in its China facilities.
"With this new relationship we have expanded our distribution into new markets, in line with a key initiative to grow our global presence of our higher-margin Nova LifeStyle branded products," said Lam. "We expect this new agreement to contribute significantly to both our sales and profitability in fiscal 2014."
Nova's products are made in the U.S., Europe, and Asia and include LifeStyle brands: Diamond Sofa, Colorful World, Giorgio Mobili, Nova QwiK and Bright Swallow International.
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