VOXX International Corporation, a manufacturer and distributor of automotive and consumer electronics, with brands such as Onkyo, Klipsch, Integra, Magnat and Pioneer, announced its financial results for its Fiscal 2025 first quarter ended May 31, 2024 with more bad news for the consumer electronics consortium with an 18.1% decline in reported net sales.
Commenting on the Company’s first quarter results, Pat Lavelle, Chief Executive Officer stated, “During the first quarter, we took aggressive steps to improve gross margins and lower both our operating expenses and working capital needs. While our sales were down for the comparable periods, gross margins improved in our Automotive and Consumer segments, and we reduced year-over-year expenses by over 16%. The retail environment remains challenging, interest rates are high, and inflation is still a major concern. With market pressures expected to continue, we have instituted various restructuring programs to right size our business. We are equally focused on reducing our debt and freeing up capital to re-invest in VOXX. With the changes made and upcoming, we expect to return to profitability this year.”
VOXX Consumer Electronics segment net sales in the Fiscal 2025 first quarter were $63.9 million as compared to $73.3 million in the comparable year-ago period, a decrease of $9.4 million or 12.8%. For the same comparable periods, premium audio product sales were $48.4 million as compared to $47.6 million. Other consumer electronics product sales were $15.5 million as compared to $25.7 million, primarily related to lower sales of domestic wireless accessory speakers as a large customer program did not repeat, as well as lower sales of the Company’s balcony solar power products.
The gross margin in the Fiscal 2025 first quarter was 27.7% as compared to 24.6% in the Fiscal 2024 first quarter, an improvement of 310 basis points as margins improved across all business segments.
Total operating expenses in the Fiscal 2025 first quarter were $32.5 million as compared to $39.0 million in the comparable Fiscal 2024 period, a decline of $6.5 million or 16.6%.
The Company reported an operating loss of $7.1 million in the Fiscal 2025 first quarter as compared to an operating loss of $11.4 million in the comparable year-ago period.
“In addition to market issues holding back top-line growth, we, too, are uncomfortable with our current debt level and our depressed share price, which is sitting near 52-week lows” added Lavelle on a conference call to investors. “Be assured, we have the same concerns as our investors. Voxx has been around for over 60 years. We have seen just about everything, and we have always persevered. This time will be no different.”
The majority of VOXX premium audio products including Klipsch are distributed by Gentec International in Canada.