Koss Corp (NASDAQ:KOSS) reported a slight increase in sales for Q1 2024, reaching $3,373,938 compared to $3,364,129 in the same period of the prior year.
The company experienced a net loss of $257,609, a significant shift from the net income of $9,944,743 reported in Q1 2023.
Basic and diluted loss per common share for Q1 2024 was $0.03, compared to basic income per common share of $1.09 and diluted income per common share of $1.01 for the same period one year ago.
Challenges in the consumer market and supply chain environment were noted as impacting factors on the company’s performance.
Released on October 26, 2023, Koss Corp (NASDAQ:KOSS)’s first quarter earnings report for fiscal year 2024 revealed a minor increase in sales but a significant net loss compared to the same period in the previous year.
Koss Corp (NASDAQ:KOSS) reported sales of $3,373,938 for the first quarter ended September 30, 2023, marking a slight increase of $9,809, or 0.3%, compared to the same period in the prior year. However, the company experienced a net loss of $257,609 for the three months ended September 30, 2023, a stark contrast to the net income of $9,944,743 reported for the first quarter of the prior year.
Challenges and Opportunities
Michael J. Koss, Chairman and CEO, noted that while orders from two distributors in Europe signaled a positive change, a reduction in consumer confidence leading to a slowdown in spending resulted in a drop in Direct-to-Consumer (DTC) sales. This nearly negated the increase in export sales. Koss Corp (NASDAQ:KOSS) also experienced a decline in sales to certain domestic distributors due to continued overstocked inventory levels of non-Koss product at these distributors.
According to the company’s condensed consolidated statements of operations, the cost of goods sold for Q1 2024 was $2,306,248, resulting in a gross profit of $1,067,690. However, selling, general and administrative expenses amounted to $1,536,279, leading to a loss from operations of $468,589. Other income and interest income were reported at $212,859, resulting in a loss before income tax provision of $255,730. After accounting for an income tax provision of $1,879, the net loss for the period was $257,609.
Despite the challenges faced in Q1 2024, Koss Corp (NASDAQ:KOSS) continues to monitor the supply chain environment and is expecting a slow rise in freight rates during the next quarter due to the current labor landscape, the recent settlement of threatened carrier strikes and labor disputes, and rising energy prices.
Explore the complete 8-K earnings release (here) from Koss Corp for further details.
This article first appeared on GuruFocus.