AXIL Brands Q3 revenue rises on hearing protection unit strength

Overview

• US hearing protection and skincare maker's fiscal Q3 revenue rose 5.4% yr/yr

• Adjusted EPS for fiscal Q3 fell to $0.02 as net income declined

• Company expanded retail partnerships with Home Depot, Sportsman's Warehouse, and Walmart

Outlook

• AXIL Brands expects Q4 revenue between $8 mln and $10 mln, up 39% to 74% y/y

• Company expects Q4 gross margin between 67% and 71%

• AXIL Brands sees full-year 2026 revenue between $30.2 mln and $32.2 mln, up 15% to 23%

Result Drivers

• HEARING PROTECTION DEMAND - Revenue growth was driven by increased demand for hearing enhancement and protective equipment products

• HAIR AND SKIN CARE WEAKNESS - Lower sales in the hair and skin care segment, due to the absence of a significant distributor order from the prior year, partially offset revenue growth

• HIGHER TARIFFS - Gross margin declined mainly due to increased customs duties and tariffs

• INCREASED MARKETING SPEND - Operating expenses rose mainly due to higher sales and marketing costs related to retail expansion and brand-building initiatives

Company press release: ID:nGNXzszvp

Key Details

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