VOXX International, supplier of VOXX.DEI remote start and distributor of SiriusXM, reported aftermarket sales for its full year ended February 28.
VOXX aftermarket sales fell by $34 million for the year to $101.8 million, compared to $135.6 million a year ago, marking a decline of approximately 25 percent.
VOXX CEO Pat Lavelle said the company’s aftermarket business “was hit hard” during the year for several reasons. First, retailers took on heavy inventories of remote start last year to insure they had adequate supply in the face of overall shortages. This lead to an oversupply in the channel which “should not be as big an issue in fiscal 2024,” Lavelle said. Secondly, VOXX saw a 30 percent decline in sales of aftermarket satellite radios, as one of its key retailers cut back on purchases for most of the year.
Third, said Lavelle, “roughly half our aftermarket business is done at new car dealers, and there was a scarcity of vehicles on the lots throughout 2022. We expect that to improve as the car manufacturers increase production this year.”
VOXX OEM sales for the year grew by $8 million due to new contracts with Stellantis, Ford and Nissan as well as higher sales of remote start and security through Subaru and “other programs.” But Lavelle estimates that VOXX would have seen an additional $18 million in OEM sales, were it not for ongoing supply chain issues.
VOXX OEM sales for the year were $73 million compared to $65 million a year ago. Total VOXX automotive net sales for fiscal 2023 were $174.8 million versus $200.6 million the year prior.
For the coming year, Lavelle said, “We anticipate growth in automotive. The extent will be dependent on more chip availability and more consistent OEM production. We didn’t expect such a big drop in the aftermarket and assuming things begin to normalize, we should see an uptick in aftermarket sales as well.”
See more on VOXX earnings here.