Luvu Brands Inc

Greetings, ladies and gentlemen, and welcome to Louvre Brands Incorporated's fiscal third quarter of fiscal 2024 conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. And as a reminder, this conference is being recorded. It is now my pleasure to introduce Christopher Knopf, the company's chief financial officer. Mr. Knopf, you may begin.

Thank you, and thank you to everyone who has joined us today for Lulu Brand's third quarter fiscal 2024 conference call. Joining me today is Louis Friedman, our founder, president, and chief executive officer, and Jordan Friedman, our vice president of e-commerce. On May 15th, we filed our Form 10-Q for the third quarter of fiscal 2024 and issued an earnings release and presentation that highlighted the company's third quarter and nine-month performance. You can find the press release and the presentation on our company website, LuvuBrands.com forward slash presentations. There are a number of items that we look forward to discussing with you this morning, including Luvu Brands financial results for the third quarter and nine months ended March 31st, 2024. Recent developments in Luvu Brands operational activities, as well as the company's near term plans for the future. At the conclusion of this call, we will be answering questions during a brief Q&A session. Before we get started, I'd like to remind you that some of the information discussed will include forward-looking statements regarding future events and our future financial performance. These include statements about our future expectations, financial projections, and our plans and prospects. Actual results may differ materially from those set forth in such statements. For discussion of risks and uncertainties, you should review the company's filings with the SEC. You should not rely on forward-looking statements at prediction of the future. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligations to update them except as required by law. Our discussion today will include non-GAAP financial measures, including EBITDA and adjusted EBITDA. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of the most directly comparable GAAP financial measures to such non-GAAP financial measures, we provide as a supplemental financial information in our press release. Now that we've completed, I'd like to start the call with a few words from Lubu Brand's founder and CEO, Louis Friedman.

Thank you, Chris, and good morning to everyone. I thank everyone for joining us today. As you have seen in the last three quarters, they have been challenging. For the third quarter, we reported sales of 5.9 million, with a decrease of 14% from the third fiscal quarter of 2023. For the nine months ending March 31st, we reported sales of 18.8 million, a decrease of 18% from the same period in the prior fiscal year. The challenge for the last three quarters came from a sales decline in the overall retail market for pleasure products, compounded with increased competition from China-based knockoffs appearing on e-tailers, mass market websites, and, of course, Amazon. As far as the Liberator brand, we believe that we maintain a competitive advantage with higher quality materials, lower material costs, better content, continual innovation, and a vertically integrated, very responsive manufacturing made right here at our Atlanta factory. In response to these competitive conditions, we've increased our marketing efforts in Google and Amazon PPP, pay per click, and other advertising channels to drive our online retail sales. We have increased our analysis over the past months to eliminate low-performing ad spends and be more targeted in our approach to drive sales. Now I'd like to walk you through some of the key takeaways of our strategy to return to growth. For Liberator, we are focusing on our product development around the erotic home category with designs of transformable, multipurpose furniture and complementary erotic home accessories. Our marketing efforts are targeting customers through traditional advertising channels such as print, email, search engine marketing. We are reaching new customers through podcasts, cable TV, as well as exploring strategic partners with influencers and sexual wellness educators. On the international front, we are in active discussions with partners around the world to increase our footprint on the global market. We hope to have further announcements about that in coming months. We believe that this will position the brand to return to growth, as we believe the adult product market will recover in the coming years. Later this year, we will be introducing a new intimacy brand that will give us access to more mass market distributions into drug and department stores, as well as specialty retailers. We believe that this new brand will align with mainstream distribution channels, that have come to embrace the emerging sexual wellness category at retail. Now for this strategy for our other brands, I'll hand it over to Jordan Friedman, our VP of e-commerce. Jordan?