Koss swings to Q1 loss on nonrecurring education customer order, higher freight costs
KOSS•Koss swung to a first-quarter loss of $0.02 per share as net sales fell 24% year over year. The company attributed the sales decline to a large education customer order that did not recur and said higher freight rates pressured gross margin.
1. Sales and earnings
Koss reported a first-quarter net loss after posting a profit a year earlier, while net sales fell 24% year over year. The company said the decline reflected the non-recurrence of a large education customer order from the prior year.
2. Margin and outlook
Gross margin declined due to the lower sales base and higher freight rates, offsetting positive effects from direct-to-consumer sales and a tariff refund. Koss said sales to certain domestic distributors were strong and expects domestic distributor and direct-to-consumer sales to support positive trends through the fiscal year.
