Echoing a similar theme to what Sonos reported last week, audio sales fell dramatically for Premium Audio Company, which is the consumer electronics division of VOXX International Corp. (Nasdaq: VOXX). For fiscal Q4 ended February 28, 2023, sales of Premium Audio Co. branded products, including Klipsch, Onkyo, Pioneer, Integra and Jamo, fell 32%. For the full year, sales were down 17.6%.

Pat Lavelle, Chief Executive Officer at VOXX, states, “While we had a lot of positive developments and continued to win new business and expand globally, Fiscal 2023 was certainly a challenging year. From inflation, fears of recessions across the globe, the retail environment and ongoing supply chain constraints, we faced a myriad of roadblocks this year and our results came in lower than expected.

“We’re anticipating continued softness in the global economy and at retail, though chip availability has improved which should positively impact our Automotive business. We continued to grow the Onkyo and Pioneer business and have plans to expand our footprint globally this year. Additionally, our Biometrics segment should show considerable improvement with new accounts awarded and several projects underway.”

Lavelle continues, “Given the near-term market outlook, we continue to lower expenses and manage our capital prudently. We’re optimistic for a rebound domestically as we move further into the year and with fewer supply chain disruptions. Our view of the opportunities within each of our segments has not changed and we remain bullish on our future prospects when there is a return to a more normalized operating environment.”

Specifically for Q4, total company net sales were $136.5 million as compared to $163.9 million in 2022, a decrease of $27.4 million or 16.7%. The company’s automotive electronics segment was only slightly down, just 2.2%. Consumer electronics segment net sales were $86.7 million as compared to $113.1 million in the comparable year-ago period, a decrease of $26.4 million or 23.4%. For the same comparable periods, Premium Audio product sales were $61.9 million, a decline of $29.5 million, or 32%.

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“From inflation, fears of recessions across the globe, the retail environment and ongoing supply chain constraints, we faced a myriad of roadblocks this year and our results came in lower than expected.”

Pat Lavelle, CEO, VOXX

The company attributed the lower segment sales to lower domestic sales of premium home theater speakers, wireless speakers and mobility products, as well as lower sales internationally due to the weaker European markets compared to the prior year, partially offset by higher sales of Onkyo and Pioneer related products.

Meanwhile, Consumer Electronics segment gross margin was 25.3% as compared to 29.8% last yar. The year-over-year decline was primarily driven by higher supply chain costs and surcharges, lower sales of premium home theater speaker products and, an increase in sales to discount channel customers in Europe. This was partially offset by mitigation steps the company has taken through pricing adjustments and other sourcing strategies.

VOXX reported an operating loss in the fiscal 2023 fourth quarter of $12.9 million as compared to operating income of $3.2 million in the comparable Fiscal 2022 fourth quarter.

For the full year, VOXX net sales in the Fiscal 2023 twelve-month period ended February 28, 2023 were $534 million as compared to net sales of $635.9 million, a decline of $101.9 million or 16%.

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