VOXX reported its sales for the recent quarter including lower sales for its automotive aftermarket sector.
VOXX said its aftermarket business was down approximately $3.5 million due to the general economy and lower car inventories, which “impacted sales across most categories, with some up and others down.” Car security (including Directed remote start/security) was down while satellite radio sales were up. Aftermarket product sales in all totaled $25.9 million for the quarter ended November 30, 2023, compared to $29.4 million for the same quarter a year ago.
VOXX OEM sales were cut almost in half by the UAW strike, the company said. “With the strike now behind us, we expect to see the automotive business begin to normalize. With the contracts that we have been awarded, we should be in a position of growth. However, with the general economy slowing based on the Fed’s moves to date [high interest rates] and car prices at all-time highs, we anticipate some near-term softness,” said VOXX CEO Pat Lavelle.
Automotive OEM sales fell to $10 million, down from $19.1 million a year ago.
Total Automotive Electronics segment net sales in the fiscal 2024 third quarter were $35.9 million as compared to $48.6 million in the year-ago period, a decrease of 26 percent.
VOXX sales fared better in its Consumer Electronics segment, hitting $100 million compared to just over $94 million a year ago. Premium audio sales were $79.9 million as compared to $73.5 million
Overall VOXX net sales for all divisions totaled $135.3 million as compared to $143.1 million a year ago, down 5.4 percent.
On a sequential basis, compared to the fiscal second quarter, sales increased 19 percent by $21.6 million.
Net income was $1.9 million compared to $7.4 million a year ago.
Lavelle told analysts on a conference call this week, “To sum it up, our sales were down in Q3, but operating income remained flat… As we look into Q4 in the first half of calendar ’24, we believe it’s going to be tight. Look at what’s happening now. Interest rates almost all-time highs, and that impacts not only consumers, but our customers as well.
“Credit card debt is very high. Government subsidies from the pandemic are over. After a decent holiday season amidst all of these challenges, we feel the economy is slowing. And therefore, we expect the next few months may be soft, and we’re going to continue to be diligent in managing our costs,”
He noted that when the Fed starts cutting interest rates it will stimulate the economy and sales should improve.
