By Denny Jacob
Voxx International, an automotive and consumer technologies manufacturer and distributor, saw its shares tumble by 11% to $10.14 in aftermarket trading on Monday following the release of its latest quarterly report. The company reported a wider loss and a decline in sales for the quarter.
The stock closed down at $11.34, marking a 10% decrease, but it still shows a 35% increase for the year.
According to Chief Executive Pat Lavelle, Voxx International’s primary challenge in the near-term is the global economy, which continues to impact consumer spending as well as their customers. The retail environment worldwide is particularly tough, while the automotive business remains affected by inconsistent customer production, though supply chain conditions have shown signs of improvement. Lavelle also acknowledged the shift in consumer preferences from durable goods to more travel and luxury-oriented products, which has had a significant impact on their retail business. Voxx International is making adjustments to adapt to this trend.
For the fiscal first quarter ended May 31, the company reported a widened loss of $10.7 million, equivalent to 45 cents a share. This is compared to a loss of $6.53 million, or 27 cents a share, in the same period last year. Sales also declined by 13% to $111.9 million, down from $128.7 million.
Voxx International anticipates further global softness and is taking measures to align its operations, reduce its workforce, and lower its overhead costs.