LOS ANGELES - Nova LifeStyle Inc. (NASDAQ-GM: NVFY), a U.S.-based designer, manufacturer and distributor of urban contemporary furniture, reported first quarter net sales growth of 19% and announced plans to launch an e-Commerce platform to sell furniture in China.
The company's sales for the first quarter ended March 31, 2014 were $17.9 million, an increase of 19.2% compared to the prior year period. Nova LifeStyle said increases in North American sales plus a contribution of $1.7 million from its subsidiary Bright Swallow acquired last April, helped offset sales declines in Europe and China.
Nova LifeStyle blamed the slow recovery for sluggish European sales and added, "Sales in China continue to be impacted by the transition to new image standards as well as product lines for the Company's franchise operations that are expected to improve sales and profitability in the longer-term."
Nova LifeStyle's net income for the first quarter was $303,552 versus $1,178,467 for the same period in 2013.
On April 21, Nova LifeStyle announced it had raised approximately $8.95 million through the sale of 1,320,059 shares of stock at $6.78 per share through registered direct placement of common stock and warrants with several institutional investors. Some of this new-found funding will be used to develop an e-Commerce platform in China, said Tawny Lam, president of Nova LifeStyle. Lam said the e-Commerce platform is being "designed to capitalize on a growing middle class and the rapidly increasing online demand for furniture and home furnishings in China."
Nova LifeStyle began trading stock on NASDAQ in January. Nova manufactures residential wood casegoods and upholstered products in the U.S., Europe and China. In late 2012, Nova LifeStyle opened a factory in China to manufacture furniture for IKEA stores in Asia.
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