LOS ANGELES - Nova LifeStyle furniture designer, manufacturer and distributor reported net sales of $98.7 million in 2014, an increase of 26%, primarily driven by a 46% increase in sales in North America. Sales fell 20% in Europe. Net income was $8.6 million. It trades on NASDAQ under the symbol NVFY.
Net sales for the year ended December 31, 2014, were $98.71 million, an increase of 26% from $78.36 million in 2013.
Nova LifeStyle, based in Los Angeles and traded over the counter, is an OEM furniture manufacturer that is pushing distributon across retail outlets such as BrickRoad in Canada, Art Van in the U.S., and online at WayFair in the U.S. and Alibaba in China.
Nova’s products are made in the U.S. and Asia and marketed worldwide. In 2014 Nova LifeStyle began production shipments to IKEA for sale in China and Asia at Nova's 1.1 million square foot factory in Dongguan, China distributed through IKEA's distribution center in Shanghai. Production of the furniture is ongoing at the 15,000 square meter production line, which meets IKEA's stringent manufacturing specifications Capacity is 360,000 units.
Nova LifeStyle's largest market is North America, contributing $64.39 million in sales in 2014, or 65% of revenues.
Nova expects the China and U.S. markets to contribute to top-line growth and generate higher margins as its manufacturing ramps up to meet increasing demand. Nova says its process of developing and marketing products for international markets is helping it develop the scale, logistics, marketing, manufacturing efficiencies to expand into the U.S., Canadian and Chinese markets.
"The U.S. remains our largest market and we remain committed to increasing brand recognition and building relationships with major reputable distributors across the country," Says Jeffrey Wong, CEO of Nova LifeStyle. "Sales in Asia also increased significantly and we view the supply agreement with IKEA China as a testament to the quality of our products and manufacturing capabilities."
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