VOXX International, which owns brands including VOXX, Directed and Klipsch announced 42 percent growth in sales and a profitable quarter with over $7 million in net income, compared to losses a year ago.
Aftermarket sales grew by 46 percent, primarily due to the acquisition of Directed on July 2 and what VOXX President and CEO Patrick Lavelle described as “An increase in remote start sales due to pent-up demand.”
Sales in the premium audio segment, (mainly Klipsch) soared by over 80 percent as consumers sought to improve not only their homes, but home offices, private gyms, and outdoor spaces, said the company.
In all, VOXX’s automotive segment saw net sales of $32.6 million vs $26.8 million for the same period last year, marking a 21.6 percent increase. The company noted that Directed sales only applied as of July and the quarter ended August 31.
OEM sales of $10.7 million declined by $1.1 million during the quarter, however, due to car plant closings. But the company was awarded approximately $30 million in new OEM business during the quarter, on top of the $375 million in new OEM business in the prior two quarters.
In all VOXX expects to double its automotive business over the next three years, it said.
Lavelle noted, “Our collaboration with Amazon to integrate Fire TV into our rear seat entertainment systems has been a key driver in securing the major portion of our future OEM business and has put VOXX Automotive significantly ahead of the competition.”
Regarding home audio, Lavelle said sales are exploding due to consumers staying at home. VOXX’s Premium Audio sector, driven mainly by Klipsch, reported sales of $69 million compared to $38 million a year ago, due to higher sales of premium home theater systems, subwoofers, and newly introduced premium wireless computer speaker systems, as well as expanded distribution and new product introductions.
“It seems like consumers have rediscovered quality audio and not just for listening to a stereo system, but for movies seen through a home theater system, soundbars, in-home gyms, outdoors, gaming, and working from home. So, we’ve seen the market growth and the audience growth,” Lavelle said. He expects the audio sales will continue to expand because Klipsch has brought in new customers who will tell others. Additionally, VOXX expanded Klipsch’s distribution and it will start selling in Q3 Onkyo, Pioneer and Pioneer Elite home audio and Integra through a newly set up distribution company called 11 Trading Co (11TC).
VOXX total net sales for the second fiscal quarter were $128.0 million, an increase of $37.8 million or 42 percent. Net income was $7.3 million compared to a net loss of $6 million a year ago, and operating income was $8.7 million.
VOXX’s Klipsch Group is under its Premium Audio division. The Klipsch Group includes Klipsch, Jamo, Energy, and ProMedia speaker brands and a new 11 Trading Company distribution company with exclusive distribution rights in the Americas to the Onkyo, Pioneer, Pioneer Elite, and Integra brands, as well as rights with respect to the Magnat and Heco brands.
VOXX completed the purchase of Directed on July 2, creating the new subsidiaries VOXX DEI LLC and VOXX DEI Canada LLC.