Shares of Koss Corporation KOSS have declined 1.6% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.5% decline over the same time frame. Over the past month, the stock has declined 21.5% against the S&P 500’s 0.6% growth.
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For the fiscal second quarter, Koss reported earnings per share (EPS) of 1 cent against a loss per share of 3 cents in the prior-year quarter.
The company reported net sales of $3.6 million, reflecting a 5.9% increase from $3.4 million in the year-ago quarter. The company recorded a net income of $0.1 million against the net loss of $0.3 million reported in 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 reached $1.4 million, an increase from $1.1 million in the same period last year. The improvement was driven by higher sales volumes and an improved product mix. The company’s gross margin expanded to 39.5%, up from 33% a year ago, benefiting from increased direct-to-consumer (DTC) sales and stronger European distribution.
Selling, general, and administrative (SG&A) expenses for the second quarter declined slightly to $1.55 million from $1.58 million in the prior-year period. The operating loss narrowed to $0.1 million from $0.5 million in the same quarter last year.
Management Commentary
Chairman and CEO Michael J. Koss highlighted that sales to the company’s two largest export distributors played a crucial role in revenue growth. European market sales more than doubled year-over-year, driven by strong demand for new products. Additionally, higher-margin DTC sales and a substantial custom order from a new U.S. customer contributed to the improved financial performance. However, these gains were partially offset by lower sales to the education sector, e-tailers and domestic distributors.
Koss also noted that freight costs have increased slightly, with further increases anticipated. The company is closely monitoring potential supply chain disruptions and tariff changes that could impact operations.
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