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AXIL Brands, Inc. reported first-quarter fiscal 2026 net sales of $6.9 million, up 17.2% compared to the same period last year. The company achieved a net income of $0.3 million, reversing a net loss of $0.1 million a year earlier. Basic and diluted earnings per share were 5 cents and 4 cents, respectively, compared to a loss per share of 2 cents last year.
Operating income improved to $0.4 million, accounting for 6% of revenues, from an operating loss of $0.1 million. The gross margin declined to 67.6% from 71% due to a shift towards wholesale channels. Cash and equivalents decreased to $4.1 million as of August 31, 2025, and inventory rose to $3.9 million, indicating increased working capital needs.
The company highlighted revenue growth from its hearing protection products, which grew 25% year-over-year. Management expects to leverage recent retail expansions and planned product launches to drive future growth, while affirming that current cash reserves are sufficient to support operations without outside financing.
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