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May 31, 2024

VOXX Q1 2025 Earnings Report

VOXX's Q1 2025 financial results were reported, with net sales declining but gross margins improving due to restructuring program.

Key Takeaways

VOXX International Corporation reported a decrease in net sales by 18.1% to $91.7 million, but gross margins improved by 310 basis points. The company experienced an operating loss of $7.1 million, which is an improvement from the previous year's $11.4 million loss. Restructuring programs were implemented to streamline sales, lower costs, and improve working capital needs.

Net sales decreased by 18.1% to $91.7 million compared to the previous year.

Gross margins improved by 310 basis points, driven by improvements in the Automotive and Consumer segments.

Operating expenses decreased by 16.6% due to restructuring programs and cost reduction initiatives.

The company reported an operating loss of $7.1 million, an improvement from the previous year's $11.4 million loss.

Total Revenue
$91.7M
Previous year: $112M
-18.1%
EPS
-$0.4
Previous year: -$0.45
-11.1%
Gross Profit
$25.4M
Previous year: $27.6M
-7.9%
Cash and Equivalents
$4.16M
Previous year: $5.2M
-20.0%
Free Cash Flow
-$2.73M
Previous year: $4.28M
-163.8%
Total Assets
$412M
Previous year: $509M
-19.0%

VOXX

VOXX

VOXX Revenue by Segment

Forward Guidance

VOXX anticipates returning to profitability this year through restructuring, debt reduction, and reinvestment.

Positive Outlook

  • Aggressive steps taken to improve gross margins.
  • Operating expenses and working capital needs lowered.
  • Focus on reducing debt and freeing up capital.
  • Re-investing in VOXX.
  • Changes made and upcoming are expected to return the company to profitability this year.

Challenges Ahead

  • Challenging retail environment.
  • High interest rates.
  • Inflation is still a major concern.
  • Market pressures expected to continue.
  • Sales were down for the comparable periods.

Revenue & Expenses

Visualization of income flow from segment revenue to net income