Hauppauge, N.Y. — Voxx International reported slightly lower sales and lower net income in its fiscal first quarter, ended May 31.
Net sales in the first quarter were $186.9 million, compared with $193 million reported in the comparable year-ago period, a decline of 3.1 percent. Voxx reported net income of $500,000 as compared with net income of $2.1 million for the prior year’s first quarter.
Pat Lavelle, Voxx International's president/CEO, stated, "Our first-quarter results, while lower than last year, came in as expected and our guidance for the year remains unchanged. We had previously communicated that our first quarter would be impacted by weather and a soft retail environment, similar to our fiscal 2014 fourth quarter. Our product margins are however trending upwards and expenses are in line with our planned increase of 4 to 5 percent. For the second quarter, we expect to see sales similar to what we posted in last year's second quarter but with higher margins and we have every reason to believe sell-in at retail will be strong as we load-in products for the all-important holiday season."
Lavelle continued, "Demand for some of our new premium audio products, such as our new Reference speaker lines under Klipsch and our Concert series under Jamo has been strong and we continue to receive positive reception from our retail partners around the upcoming launch of our action cameras and biometric products. While both of these new categories will have a positive impact on our results this year, it will not be major as we will launch them later in the fiscal year. We expect these categories, as well as sales from the recently announced Car Connection insurance discount programs, to have a more meaningful impact on our sales and profitability next year.”
Automotive sales for the quarter were $102.4 million, a decline of 1.7 percent as compared with $104.2 million reported in the fiscal 2014 first quarter.
Premium audio sales for the quarter were $35.2 million, a decline of 12.3 percent as compared with $40.2 million reported in the comparable year-ago period.
Consumer accessories sales for the quarter were $49.1 million, an increase of 1.7 percent as compared with $48.3 million reported in the prior year’s first quarter.
As a percentage of sales for the fiscal first quarter, automotive represented 54.8 percent, premium audio represented 18.8 percent, and consumer accessories represented 26.3 percent. As a percentage of sales for the fiscal first quarter of last year, automotive represented 54 percent, premium audio represented 20.8 percent, and consumer accessories represented 25 percent.