FGI Industries' Q2 revenue misses estimates

Overview

• FGI Q2 revenue rises 5.5% y/y but misses analyst expectations, per LSEG data

• Adjusted net loss of $1.2 mln misses analyst estimates, per LSEG data

• Gross margin declines 240 bps due to ongoing tariff environment

Outlook

• FGI Industries reiterates fiscal 2025 revenue guidance of $135-145 mln

• Company expects fiscal 2025 adjusted operating income of $(2.0)-1.5 mln

• FGI sees fiscal 2025 adjusted net income of $(1.9)-1.0 mln

Result Drivers

• TARIFF IMPACT - Gross margin declined due to ongoing tariffs and higher freight costs

• PRODUCT MIX - Revenue growth driven by Sanitaryware, Bath Furniture, and Covered Bridge cabinetry, while Shower Systems declined

• GEOGRAPHIC DIVERSIFICATION - FGI exploring China+1 strategy to diversify sourcing and mitigate tariff impacts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home improvement products & services retailers peer group is "buy"

• Wall Street's median 12-month price target for FGI Industries Ltd is $8.75, about 55.5% above its August 8 closing price of $3.89

Press Release: ID:nPnBwtFWa