Business Segments

6 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Business Segments

NOTE 16. BUSINESS SEGMENTS 

The Company’s management reviews the results of its operations by the following three business segments:

· Direct includes product sales through our four e-commerce sites and our single retail store;

· Wholesale includes branded products sold to retailers and distributors, and products purchased for resale sold to retailers and mass merchants. The Wholesale category also includes contract manufacturing services, which consists of specialty items that are manufactured in small quantities for certain customers, and which, to date, has not been a material part of our business; and

· Other consists principally of shipping and handling fees and costs derived from our Direct business and fulfillment service fees.

For the three and six months ended December 31, 2019, sales to and through Amazon accounted for 38% and 35% of our net sales, respectively. The following is a summary of sales results for the Direct, Wholesale, and Other channels.

LUVU BRANDS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2019 (UNAUDITED)

	Three Months Ended (unaudited)
	December 31, 2019			December 31, 2018
(in thousands)
Net Sales:
Direct	$	1,303		$	1,449
Wholesale		3,398			3,234
Other		78			90
Total Net Sales	$	4,779		$	4,773
Gross Profit:
Direct	$	670		$	647
Wholesale		1,006			926
Other		(157	)		(251	)
Total Gross Profit	$	1,519		$	1,322

	Six Months Ended (unaudited)
	December 31, 2019			December 31, 2018
(in thousands)
Net Sales:
Direct	$	2,421		$	2,595
Wholesale		6,296			5,933
Other		157			165
Total Net Sales	$	8,874		$	8,693
Gross Profit:
Direct	$	1,203		$	1,171
Wholesale		1,821			1,584
Other		(367	)		(446	)
Total Gross Profit	$	2,657		$	2,309