For those looking at how the consumer electronics market is faring during the coronavirus pandemic, Klipsch is a good indicator that all is well. Klipsch sales grew 19% while other segments of VOXX International Corp. (Nasdaq: VOXX), namely its automotive sector, took a hit.
For the year, net sales of $394.9 million were down $52 million. For Q4, net sales in the fiscal 2020 were $101.1 million, a $6.4 million decline. The company reported an operating loss of $34.7 million in the Fiscal 2020 fourth quarter.
But consumer electronics was a bright spot. VOXX’s Consumer Electronics segment had net sales of $73.1 million as compared to $70.0 million, up $3.1 million for the year. Specifically within that segment, the company’s premium audio sales, which is Klipsch, grew $12.3 million for Q4, according to Pat Lavelle, President and CEO of VOXX International. Consumer Electronics segment gross margin was 32.2%, up from 25.1% last year.
“The Consumer Electronics segment, which now includes accessories and premium audio product lines, is where we had the bulk of restructuring,” says Lavelle. “Segment sales were down a little over 1% for the year, and that decline was expected as we discontinued several accessory product lines. But with the revised lineups, and especially the strong performance of Klipsch-branded products, gross margins were up 200 basis points, segment expenses were lower and we generated pretax income of $9.4 million versus a loss of $29.3 million in fiscal 2019.
“In fiscal ’20, we saw continued strength in sales of premium mobility products, wireless and Bluetooth speakers, soundbars and headphones. We also grew our custom installation speaker business. When COVID hit in Q4, we were able to redirect shipments to North America and the EMEA markets to minimize the impact of the APAC region shutdown, and we continued to see higher sales of home theater, portable Bluetooth speakers, soundbars and other product lines. This was done by the quick shift from traditional brick-and-mortar stores to online sales and expanded distribution,” Lavelle told investors.
For fiscal year 2021, VOXX plans to expand distribution further and have new partners to help drive sales across a number of categories.
Lavelle cited the Klipsch’s new The Fives bookshelf powered speakers and plans for new soundbars with Dolby Atmos, Wi-Fi, Google Assistant, and Amazon Alexa launching this summer and fall to be strong sales contributors.
“The Klipsch lineup has never been stronger,” add Lavelle.