Koss (KOSS) Q4 2024 earnings summary

Executive summary

• Fourth quarter sales declined 5.9% year-over-year to $2.89 million, with a net loss of $110,369, an improvement from a $259,839 loss in the prior year period.

• Full-year sales fell 6.4% to $12.27 million, with a net loss of $950,911, compared to net income of $8.32 million in the previous year.

• Sales declines were driven by lower orders from the largest European distributor and reduced export sales to Europe and Asia.

• Education sector sales rose approximately 60% and direct-to-consumer (DTC) sales increased 16% in Q4, while DTC sales for the year were down nearly 20%.

• E-tailer sales increased nearly 50% for the year, partially offsetting declines in other channels.

Financial highlights

• Q4 gross profit was $1.17 million, up from $0.82 million in the prior year quarter.

• Full-year gross profit was $4.19 million, down from $4.46 million the previous year.

• Q4 loss from operations was $317,763, improved from $612,718 loss in the prior year quarter.

• Full-year loss from operations was $1.87 million, compared to a $24.88 million loss in the prior year (which included a $33 million one-time other income item in 2023).

• Basic and diluted loss per share for Q4 was $0.01, and for the year was $0.10, compared to prior year EPS of $0.90 (basic) and $0.85 (diluted).

Outlook and guidance

• Management cited ongoing concerns about inflation, higher energy costs, increased interest rates, and labor market conditions affecting sales domestically and overseas.