VOXX International Corporation, supplier of VOXX, Viper and other aftermarket remote start and security brands, reported continued sluggish sales in the aftermarket with some improvement expected this fall.
VOXX’s automotive aftermarket sales for the quarter ended May 31 totaled $18.1 million compared to $22.9 million a year ago.
CEO Pat Lavelle said “The aftermarket continues to be challenged due to lack of new cars and the overall retail environment. Our aftermarket customers are working through inventories from the prior year. Dealers and distributors are watching inventories closely. We expect things to loosen a bit as we move into the fall and winter seasons.”
VOXX OEM sales, however, rose to $20.3 million as compared to $16.7 million driven by increases in rear seat entertainment programs with Ford, Stellantis and Nissan.
VOXX’s Klipsch brand speakers will also appear in the 2025 Ram 1500 REV Tungsten trim in a 23-speaker system,
Total net sales of VOXX’s Automotive Electronics division were $38.4 million for the quarter compared to $39.6 million a year ago, down three percent.
The company’s Consumer Electronics division saw a decline of 17.5 percent for the quarter.
Lavelle said “The long-term opportunity for VOXX remains compelling, our market share is strong and we have several new innovations on the horizon. Our primary obstacle near-term is the global economy as it continues to impact consumer spending and our customers. The worldwide retail environment in particular is tough, and our Automotive business continues to be impacted by inconsistent customer production, though supply chain conditions have improved. Perhaps the biggest impact to our retail business is the ongoing consumer pivot from durables to more travel and luxury-oriented goods, and we are making adjustments as a result.”
VOXX expects a weak global economy for the rest of 2023. Lavelle noted that some economists have predicted recession during this year’s Q4 or in Q1 2024.
For the total VOXX Corporation, including Consumer Electronics and Biometrics, net sales were $111.9 million for the quarter, down from $128.7 million a year ago, a decline of 13 percent.
Net loss was was $10.7 million as compared to a net loss of $6.5 million for the year ago quarter.
The company reported an operating loss in its fiscal first quarter of $11.4 million as compared to an operating loss of $6.7 million for the quarter last year.
