VOXX Aftermarket Sales Decline

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VOXX Aftermarket Sales Fall
VOXX reported lower sales and earnings in its aftermarket sales and for the full VOXX International Corp. for the recent quarter and financial year 2024 ending in February.

CEO Pat Lavelle said its fiscal 2024 was worse than the year prior given the global economy, retailers cutting back on orders, inflation and the higher cost of inventory among other reasons.  OEM sales were cut in half during the United Auto Workers Strike.  He noted that consumer confidence in the economy is at its lowest point in the past six months.

“This marks two years of losses after two years of growth and profitability on an adjusted EBITDA* basis. We plan to cut at minimum 5 to 10 percent of overhead and will also review all products and programs.

For the aftermarket specifically, Lavelle said, “We maintain nine of the top ten brands in remote start and our market share is intact and stable.”
VOXX Aftermarket sales down
VOXX CEO Pat Lavelle
VOXX aftermarket net sales for the fiscal year were approximately $84 million compared to almost $102 million a year ago.  For the quarter, aftermarket sales were approximately $21 million, compared to $27.6 million a year ago.

Lavelle said on a conference call with analysts, “The aftermarket miss was predominantly in remote start. Some collision avoidance, Carlink, Car Connections and satellite radio was up but the aftermarket overall was challenged.”  He cited a more sluggish retail environment, changes in the way car dealers are operating, inflation, interest rates and the state of the US economy as contributing to the challenged retail environment.  However, he said retail inventory is in a better position now than it was this time last year.

VOXX OEM sales are also down but are expected to improve in the second half of its fiscal 2025.
VOXX announced that it is ending its rear seat entertainment program with Stellantis.

Lavelle said, “After months of negotiations and after what we feel were our best efforts to renegotiate, we decided to exit rear seat entertainment with Stellantis. It was not an easy decision, but a lot has changed…” He cited rising costs and lower volumes.

VOXX however is continuing programs with Ford and is working on a new lighting programs with Nissan and Ford.  VOXX also has a new contract with the US Postal Service.

Total VOXX OEM product sales were $58.3 million compared to $73 million for the prior year. OEM product sales for the quarter were $11.7 million compared to $21.9 million for the quarter a year ago.

On the OEM side, Lavelle expects “a sizeable ramp” in the second half and he expects the full VOXX Automotive Electronics segment to be profitable in the new fiscal year.

Total net sales for the Automotive Electronics segment for the year were $142.3 million compared to $174.8 million a year ago, down 18.6 percent.  For the quarter, Automotive Electronics net sales were $32.6 million compared to $49.5 million a year ago.
For total VOXX Corp. sales including Consumer Electronics and Biometrics, net sales for the full fiscal year were $468.9 million compared to $534 million, down about 12 percent. Net loss was $40.9 million compared to a net loss of $27.5 million for the year prior.

*EBITDA (earnings before interest, taxes, depreciation and amortization).

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2 Comments

  1. Pat Lavelle is a Biden supporter. With these financial reports, he should probably bow out or be removed.

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