VOXX International Corporation (NASDAQ:VOXX) Q3 2024 Earnings Call Transcript
VOXX International Corporation (NASDAQ:VOXX) Q3 2024 Earnings Call Transcript January 10, 2024
VOXX International Corporation isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to VOXX International Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please note that today's conference is being recorded. I’ll now hand the conference over to your speaker host, Mr. Glenn Wiener. Please go ahead.
Glenn Wiener: Thank you, Olivia. Good morning, and welcome to VOXX International's fiscal 2024 third quarter and nine month results conference call. Yesterday, we filed our Form 10-Q, and we issued our press and both documents can be found in the Investor Relations section of the website at www.voxxintl.com, and we expect to post an updated investor presentation later this week. Speaking from management today will be Pat Lavelle, Chief Executive Officer, who is currently out in Las Vegas, attending the 2024 Consumer Electronics Show; and Michael Stoehr, Senior Vice President and Chief Financial Officer. Their remarks will be followed by question and answers. As for today, I would like to remind everyone that except for historical information contained herein, statements made on today's call and webcast that would constitute forward-looking statements are based on currently available information.
The company assumes no responsibility to update any such forward-looking statements and I'd like you to point you to the risk factors associated with our business which are detailed in our Form 10-K for the period ended February 28, 2023. Thank you for your continued support, and I would like to now turn the call over to Pat.
Patrick Lavelle: Thank you, Glenn, and good morning, everyone. Let me start off by wishing you all a happy and healthy new year. As Glenn said, announced with our team at CES and show kicked off yesterday. It's early, but the response to our new lineup and the various projects that we have in development has been very positive, and I'm expecting more of the same over the next few days. 2023 has been tough for everyone, not just as VOXX, our entire industry has had a very challenging year. And we're certainly happy to be turning the page. The global economy remains challenging, and we're doing all that we can to navigate through those challenges, focusing on three primary areas: protecting and growing sales in both the short and long-term, improving gross margins through supply chain and internal efficiencies, and lowering both our fixed and variable expenses.
During the quarter, we were successful achieving two of these three objectives, as our gross margins grew by 90 basis points, and our operating expenses improved by a little over 2%. Sales declined roughly 5.4% with Consumer up and Automotive down. But overall, operating income was the same as the prior year. Mike will provide more financial details during his remarks, and I'll focus on the segments, what's happening and what we expect to close out the year, and as we move into fiscal 2025. So let me start with Consumer, as we have a lot of new -- news to report. Consumer sales came -- were up over 6% in Q3, with Premium Audio the driver. This is a big positive for us as the segment has been on the decline since the big bump that we had from COVID (ph).
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