VOXX Q2 2024 Earnings Report
Key Takeaways
VOXX International Corporation reported a decrease in net sales for the second quarter of Fiscal Year 2024, with a total of $113.6 million compared to $125.7 million in the previous year. However, the company saw improvements in gross margin, which increased to 25.2% from 23.3%, and a reduction in operating expenses. The operating loss improved to $8.5 million from $10.0 million year-over-year. The company expects to generate year-over-year growth and profitability in the second half of the fiscal year.
Net sales decreased by 9.6% year-over-year, totaling $113.6 million.
Gross margin increased to 25.2% from 23.3% in the comparable period.
Operating expenses improved by $2.1 million, or 5.3%, compared to the prior year.
The company reported an operating loss of $8.5 million, an improvement from the $10.0 million loss in the same quarter last year.
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VOXX Revenue by Segment
Forward Guidance
VOXX anticipates year-over-year growth and profitability in the second half of the fiscal year, but remains conservative due to global economic uncertainties. Significant restructuring and realignment initiatives are expected to generate higher gross margins.
Positive Outlook
- Expectation of year-over-year growth and profitability in the second half of the fiscal year.
- Restructuring and realignment initiatives expected to generate higher gross margins.
- New products and programs across business segments driving optimism.
- Significant steps taken to restructure the business and reduce operating expenses.
- Sequential improvements in business seen.
Challenges Ahead
- Extent of growth dependent on the state of car markets and consumer spending.
- Uncertainty due to the UAW strike.
- Softness in the economy and decrease in consumer spending.
- Ongoing product shortages in the Biometrics segment.
- Conservative outlook given the state of the global economies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income