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LIVE Nasdaq· Live Ventures Incorporated
Earnings report Q4 2023

LIVE Reports Mixed Performance in Latest Quarter with Declining Revenue in Retail-Entertainment Segment

Segments of revenue

In the latest quarter, LIVE generated a total revenue of $117.59 million. The revenue was distributed across different segments as follows:

  • Retail-Entertainment: $20.59 million, accounting for 17.5% of total revenue. This segment experienced a decrease of approximately $2.7 million or 11.5% compared to the prior year. The decline was primarily attributed to reduced consumer demand and a shift in sales mix towards used products, which generally have lower ticket sales with higher margins.
  • Retail-Flooring: $34.32 million, representing 29.2% of total revenue. This segment showed significant growth compared to the previous year when it had no revenue. No specific explanation was provided for this increase.
  • Flooring Manufacturing: $29.25 million, accounting for 24.9% of total revenue. This segment experienced a modest increase of $2.81 million or 10.6% compared to the prior year.
  • Steel Manufacturing: $33.35 million, representing 28.4% of total revenue. This segment showed a substantial increase of $15.37 million or 85.5% compared to the prior year.
  • Corporate & Other: $0.09 million, representing a negligible portion of total revenue.

Strengths

Despite the overall decline in revenue, LIVE demonstrated strengths in certain segments. The Retail-Flooring segment experienced significant growth, contributing $34.32 million in revenue. Additionally, the Steel Manufacturing segment showed strong performance with a substantial increase in revenue of $15.37 million. The shift in sales mix towards used products in the Retail-Entertainment segment resulted in higher gross margins of 56.0% compared to the prior year's 52.5%.

Challenges

The Retail-Entertainment segment faced challenges in the latest quarter, experiencing a decline in revenue of approximately $2.7 million or 11.5%. This decline was primarily attributed to reduced consumer demand and a shift in sales mix towards lower-ticket used products. The segment's operating income also decreased from approximately $3.7 million in the prior year to $3.1 million in the current quarter.

Noteworthy

The Retail-Flooring segment showed noteworthy performance by generating $34.32 million in revenue, compared to no revenue in the previous year. This significant growth indicates potential opportunities for LIVE in the flooring market. Additionally, the Steel Manufacturing segment demonstrated exceptional growth with a revenue increase of $15.37 million, reflecting successful operations in this segment.

Summary

LIVE's latest quarter performance was mixed, with declining revenue in the Retail-Entertainment segment offset by growth in the Retail-Flooring and Steel Manufacturing segments. The decline in the Retail-Entertainment segment was primarily due to reduced consumer demand and a shift in sales mix towards lower-ticket used products. However, the shift in sales mix resulted in higher gross margins for the segment. The Retail-Flooring segment showed significant growth, while the Steel Manufacturing segment demonstrated exceptional performance. Overall, LIVE's performance in the latest quarter highlights both strengths and challenges in different segments of the company's operations.

Source documents

Form 10-Q  filed on Feb 08, 2024
109 pages scanned

Reference data

Company financials Q4 revenue 118M
Analyst estimates Q4 EPS missed by NaN%
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