Luvu Brands, Inc. (OTC: LUVU)

Luvu Brands, Inc. designs manufactures and markets a portfolio of consumer lifestyle brands. The company sells its products through its own websites online mass merchants and specialty retail stores located around the world. Its brand lineup includes Liberator for intimacy enhancement Jaxx for casual seating and Avana for sleep and comfort solutions. Headquartered in Atlanta Georgia the firm operates a 140000 square foot facility that integrates manufacturing distribution product development and marketing under one roof.

Revenue comes from the sale of Liberator Jaxx and Avana branded products directly to consumers through the company's e commerce sites. The company also supplies wholesalers online retailers and specialty stores that resell the items to end users. A significant portion of sales is generated through major online marketplaces such as Amazon which accounted for over one third of net sales in recent years. Additionally the firm earns income from private label arrangements and custom orders for large regional and national chains.

The company operates through the following segments.

• The Liberator segment designs manufactures and markets intimacy enhancement products such as bedding accessories positional aids and furniture that help users achieve comfortable and varied sexual positions. These items are sold under the Liberator brand via the company's website liberator.com through online retailers and through wholesale channels that serve adult specialty and mass market outlets.

• The Jaxx segment produces casual indoor and outdoor seating including beanbags sofas daybeds and related accessories made from repurposed polyurethane foam and other materials. Products are distributed through modern furniture e tailers mass marketers specialty retailers interior designers schools daycare centers and retail furniture stores as well as through private label programs for large chains.

• The Avana segment offers top of bed comfort products that support sleep meditation and relief from conditions such as acid reflux surgery recovery and chronic pain. These cushions props and specialty pillows are sold via online merchants including Amazon Walmart medical product distributors and through the company's website avanacomfort.com.

Luvu Brands holds a niche position in the fragmented markets for sexual wellness casual seating and sleep comfort products. The company differentiates itself through strong brand recognition particularly for Liberator which is often referenced as a category name rather than a generic product. Competitors include numerous online adult retailers specialty furniture makers and large mass market chains that offer similar items but lack the firm's integrated production model that controls manufacturing distribution and marketing under one roof. Additional advantages arise from the company's ability to repurpose foam waste into Jaxx beanbags its price to value offering and its consistent receipt of positive consumer reviews. By maintaining control over the entire production cycle Luvu Brands can respond quickly to demand changes reduce lead times and keep costs lower than many outsourced competitors.

The company serves a broad mix of individual consumers who purchase directly from its websites and online marketplaces. Business customers include wholesalers online retailers specialty stores and mass market chains that resell Liberator Jaxx and Avana products. A major customer is Amazon which generated more than one third of net sales in the most recent fiscal year. Additional sales come from adult specialty boutiques furniture e tailers interior designers schools and daycare centers that buy Jaxx seating for institutional use.