Klipsch Income Up This Fiscal Year on Strategy to Pare Unprofitable Distribution
Fiscal Q3 sales in the premium audio segment at Voxx declined $7.7 million due to the company’s decision to pare unprofitable online distribution of the Klipsch brand, said CEO Pat Lavelle on an earnings call Thursday streamed live from CES,…
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where Voxx was a Central Hall exhibitor. The strategy is “working, as gross margins are up and the segment is more profitable,” he said. Pretax income in the segment year to date is running $8 million higher than a year earlier, he said. Klipsch will launch an “exclusive” soundbar and subwoofer program in March “for direct import with Amazon,” he said. Klipsch also signed a partnership agreement, making it the “official speaker supplier” of First Watch restaurants, which runs 200 breakfast locations in 26 states, he said. “We are also in discussions with a number of other large global organizations, and success with just one or two of them should help drive performance and heightened visibility of the Klipsch brand.”