AXIL Brands saw a significant earnings increase in Q2, with cash reserves rising, despite a slight dip in net sales compared to last year.

City: The report comes from the headquarters of AXIL Brands, which has been making waves lately. Their shares have actually gone up by 0.4% after announcing their earnings for the second quarter of fiscal 2025. That’s pretty impressive, especially when you consider the S&P 500 index dropped by 1.5% during the same period. Over the last month, AXIL shares dipped a bit, but not as much as the S&P, which fell 6.9%. So, they’re holding up well.
Now, let’s talk numbers. AXIL Brands reported earnings per share of 8 cents, which is a 60% jump from 5 cents last year. That’s a solid increase! However, their net sales were $7.73 million, down 8.2% from $8.42 million last year. They said this was mainly due to timing issues with post-Thanksgiving sales, which they’re now recognizing in the third quarter instead of the second.
Breaking it down by segments, their biggest area, Hearing Enhancement & Protection, brought in $7.45 million, down 9.1% from last year. Gross profit for this segment also fell to $5.32 million. On the flip side, their Hair & Skin Care segment did better, with revenues up 23.3% to $284,545. That’s a nice boost!
Overall, their gross profit dropped 12.1% to $5.5 million, and the gross margin fell to 71.1%. Operating income took a hit too, down 46.8% to $0.7 million. They’re feeling the pinch from lower sales and higher costs, which is reflected in their net profit margin dropping to 8.2% from 12.1% last year.
On the expense side, total operating costs were down slightly to $4.83 million. They managed to cut back on advertising costs, but some expenses like stock-based compensation went up. Their cash position improved significantly, with $5.21 million in cash compared to $3.25 million earlier this year. That’s a big win for them!
Management is optimistic about the future, focusing on expanding their reach and product lines. They’ve spent about $130,000 on consulting to help with this growth, although they admit the benefits are still in the works. They’re also working on improving their e-commerce strategies and diversifying sales channels.
In summary, while there are some challenges, AXIL Brands is making strides in cash management and is looking to grow. They’re adapting to market changes and aiming for a stronger position moving forward.