“`html
AXIL Brands, Inc. (AXIL) reported a 5.2% decline in shares following its fiscal 2025 results, contrasting with a 0.4% drop in the S&P 500. The company posted net sales of $26.3 million, down 4.5% from $27.5 million the previous year, with net income falling to $0.9 million from $2 million and basic earnings per share at 13 cents compared to 57 cents.
Despite revenue and earnings pressures, AXIL improved its cash flow, generating $1.9 million versus $3,000 in fiscal 2024. Gross profit fell to $18.6 million with a gross margin of 71%. The company reported adjusted EBITDA growth of 21.3% to $2.4 million. Cash reserves increased to $4.8 million, and inventory decreased to $2.5 million, indicating better working capital management.
Looking forward, AXIL management projected positive momentum for fiscal 2026, driven by a new wholesale agreement with a major retailer expected to boost revenues. The company is also emphasizing U.S.-based manufacturing to strengthen its supply chain against trade challenges.
“`
