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Shares of Nova LifeStyle, Inc. NVFY have risen 13.9% since the company announced its financial results for the quarter ended March 31, 2025. This outpaced the S&P 500 Index, which rose 0.7% during the same period. Over the past month, NVFY’s stock has experienced a remarkable 76.5% gain, significantly exceeding the S&P 500’s 12.1% increase.
NVFY’s Revenue Growth and Profitability Trends
Nova LifeStyle reported net sales of $2.6 million for the first quarter of 2025, marking a 10.9% increase from $2.4 million in the prior-year period. The gain was driven by a 26% rise in the average selling price, which offset a 12% decline in sales volume. NVFY’s gross profit improved 18.5% to $1.2 million from $1 million a year earlier, with the gross margin expanding to 46% from 43%. This uptick was primarily due to a favorable shift in the product mix toward higher-margin offerings.
Despite these improvements, Nova LifeStyle recorded a net loss of $0.3 million, narrower than the $1.5 million loss reported in the same quarter last year. Loss per share shrank to $0.03 from $0.65 year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Nova LifeStyle’s Other Key Business Metrics
North America remained Nova LifeStyle’s dominant market, with sales to the region increasing 12.6% to $2.6 million from $2.3 million, accounting for nearly all of the quarter’s total revenues. Sales to other countries declined substantially, totaling just $17,871 compared to $50,663 a year earlier.
Operating expenses fell 44.2% year over year, reflecting improved cost control. Total operating expenses dropped to $1.4 million from $2.5 million, mainly due to a steep 41.4% reduction in selling expenses and a nearly flat general and administrative expense line. Research and development (R&D) costs, which had reached $751,216 in the prior year due to investment in AI-driven systems, were scaled back to just $390 in the first quarter of 2025.
Nova LifeStyle incurred a non-operating goodwill impairment charge of $218,606. When combined with a small amount of interest and financial expenses, total non-operating expenses amounted to $207,771. Still, NVFY’s loss from operations improved to $193,360 from a steep $1.5 million loss in the prior year.
Cash outflow from operations stood at $0.3 million, slightly worse than $0.2 million recorded in the prior-year quarter.
Nova Lifestyle, Inc Price, Consensus and EPS Surprise
Nova Lifestyle, Inc price-consensus-eps-surprise-chart | Nova Lifestyle, Inc Quote
NVFY’s Management Commentary
Newly appointed CEO Xiaohua Lu characterized the period as an “exciting time” for the company and highlighted the positive reception of Nova LifeStyle’s high-margin product lines. He emphasized a strategic focus on product development aligned with emerging trends, with an eye toward maintaining strong gross margins amid industry uncertainty, particularly around tariffs.