Koss Corporation Reports Mixed Earnings Amid Stock Decline
Shares of Koss Corporation (KOSS) have dipped 1.6% following the company’s earnings announcement for the quarter ending December 31, 2024. In comparison, the S&P 500 index saw a smaller decline of 0.5% during the same period. Over the last month, KOSS stock has significantly underperformed, dropping 21.5%, while the S&P 500 has managed a 0.6% increase.
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During its fiscal second quarter, Koss reported earnings per share (EPS) of 1 cent, recovering from a loss of 3 cents per share in the same quarter the previous year.
Quarterly Financial Highlights
Koss generated net sales of $3.6 million, up 5.9% from $3.4 million in the year-ago quarter. The company achieved a net income of $0.1 million, in contrast to a net loss of $0.3 million reported during the same period last year.
Koss Corporation Price, Consensus and EPS Surprise
Koss Corporation price-consensus-eps-surprise-chart | Koss Corporation Quote
Other Key Business Metrics
Koss’ gross profit for the fiscal second quarter climbed to $1.4 million, compared to $1.1 million the previous year, due to stronger sales volumes and an improved product mix. The gross margin grew to 39.5%, up from 33% last year, primarily aided by increased direct-to-consumer (DTC) sales and enhanced distribution in Europe.
However, selling, general, and administrative (SG&A) expenses saw a slight decrease from $1.58 million to $1.55 million year-on-year. Moreover, the operating loss decreased to $0.1 million from a loss of $0.5 million during the same quarter last year.
Management Commentary
Chairman and CEO Michael J. Koss emphasized that sales to the two largest export distributors were pivotal in driving revenue growth. Sales from the European market more than doubled from the previous year, spurred by robust demand for new products. Additionally, both higher-margin DTC sales and a significant custom order from a new U.S. customer positively influenced the financial results. Nonetheless, declines in
