EAST HANOVER, N.J., July 30, 2025 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced that it will issue financial results for the second quarter 2025 after the market close on Monday, August 11, 2025. Management will conduct a conference call on Tuesday, August 12, 2025, at 9:00 am Eastern Time to discuss the quarterly results.A webcast of the conference call and accompanying presentation materials will be avail ...

Core Insights - The home improvement market is characterized by competition and evolution, with Home Depot Inc. (HD) and FGI Industries Ltd. (FGI) representing contrasting business models [1][2] Group 1: Home Depot (HD) - Home Depot is a retail giant with significant market share and a strong supply chain, dominating both DIY and professional segments in North America [3][4] - The company benefits from a balanced customer base, capturing demand from individual home projects and large-scale renovations, supported by aging housing stock and supply shortages [4] - Home Depot's "One Home Depot" strategy integrates digital and in-store experiences, enhancing customer flexibility and fulfillment [5] - Financially, Home Depot shows strong profitability and a focus on long-term growth, with continued investments in supply chain and digital tools [6] - Fiscal 2025 sales are projected to grow 3.1% year-over-year to $164.5 billion, with EPS expected to decline 1.3% to $15.04 [11] Group 2: FGI Industries (FGI) - FGI Industries focuses on kitchen and bath products, reporting an 8% year-over-year revenue increase to $33.2 million in Q1 2025, with significant growth in specific segments [7][10] - The company emphasizes repair-and-remodel demand and utilizes an AI-driven platform to engage the premium kitchen design market [9] - Despite a net loss of $0.6 million in the quarter, FGI maintains a revenue guidance of $135-$145 million for 2025, indicating confidence in its growth strategy [10][14] - FGI's sales are expected to increase 5.5% year-over-year to $139 million in 2025, with a projected loss per share of 18 cents [14] Group 3: Market Performance and Valuation - Home Depot's stock has grown 1.3% over the past year, underperforming the S&P 500's 13.3% return but outperforming FGI's 22.8% decline [17] - Home Depot trades at a forward P/E multiple of 23.21X, above its 3-year median, reflecting its alignment with Pro customers and strong brand equity [21][22] - FGI trades at 20.82X, above its 5-year median, indicating potential for multiple expansion as it executes its growth strategy [23] - Home Depot's operational strength and investor confidence position it as a long-term leader, while FGI's innovation-driven approach signals long-term promise despite its smaller scale [25][26]

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has FGI Industries Ltd. (FGI) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.FGI Industries Ltd. is one of 204 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #12 within the Zacks Sector Rank. The ...

Investor First Quarter 2025 Presentation Disclaimer Certain matters discussed in this presentation contains forward-looking statements concerning our business, operations and financial performance and conditions, as well as our plans, objectives and expectations for our business operations and financial performance and condition. These statements may be preceded by, followed by or include the words "may," "expect," "will," "will likely result," "should," "estimate," "plan" and other similar expressions that ...

Revenue Performance - Revenue for the three months ended March 31, 2025, increased by $2.5 million, or 8.0%, to $33.2 million compared to $30.8 million for the same period in 2024[160] - Revenue from sales of sanitaryware decreased by 1.7% to $20.2 million, representing 60.7% of total revenue for the three months ended March 31, 2025[163] - Revenue from sales of other products increased by 135.7% to $3.3 million, driven by growth in custom kitchen cabinetry[166] - Revenue from the United States market was $21.2 million, representing a consistent 63.7% of total revenue for the three months ended March 31, 2025[167] - Revenue for the three months ended March 31, 2025, was $33.2 million, compared to $30.8 million for the same period in 2024, reflecting growth in new product lines[203] Profitability and Loss - The company incurred a net loss of $0.8 million for the three months ended March 31, 2025, compared to a net loss of $0.5 million for the same period in 2024[176] - The adjusted operating loss for the three months ended March 31, 2025, was $1.3 million, with adjusted operating margins at -3.8%[203] Expenses - Selling and distribution expenses rose by $1.0 million, or 16.8%, to $7.2 million, driven by expanded marketing efforts and higher personnel-related expenses[171] - General and administrative expenses increased by $0.4 million, or 18.3%, to $2.7 million, primarily due to inflationary pressures[172] - The company has implemented cost control initiatives across multiple departments to lower recurring operating expenses[188] Liquidity and Cash Management - Total liquidity as of March 31, 2025, was $14.3 million, providing sufficient financial flexibility for organic growth strategies[156] - Net cash used in operating activities was approximately $1.7 million for the three months ended March 31, 2025, a significant improvement from $8.0 million in the same period of 2024[192] - The company had approximately $1.2 million in cash and cash equivalents as of March 31, 2025, with $13.2 million outstanding under its credit facilities[177] - The company expects to improve liquidity and reduce its cost structure following the termination of a warehouse lease, which will lower ongoing fixed overhead expenses[179] Inventory and Working Capital - The company recorded a decrease in inventory by $1.4 million and a decrease in accounts receivable by $0.8 million, indicating improved working capital management[192] Strategic Initiatives - The company has entered into a 5-year licensing agreement for an industry-leading overflow toilet technology, expected to enhance product offerings[156] - The company is in discussions with lenders regarding covenant breaches related to its debt coverage ratio as of March 31, 2025[178] - Borrowings under the East West Bank credit facility amounted to $10.7 million as of March 31, 2025, up from $9.6 million at the end of 2024[184]

Revenue Performance - Total revenue for Q1 2025 was $33.2 million, an increase of 8.0% year-over-year[3]. - Revenue for Q1 2025 was $33,212,548, an increase of 8.5% compared to $30,753,519 in Q1 2024[24]. - Bath Furniture revenue increased by 32.7% to $4.1 million, while Covered Bridge cabinetry revenue surged by 135.7% to $3.3 million[3][8]. - Sanitaryware revenue decreased to $20.2 million, down from $20.5 million in the prior year[7]. - The company provided fiscal 2025 guidance with total net revenue expected to be between $135 million and $145 million[16]. Profitability and Loss - Gross profit reached $8.9 million, up 5.8% compared to the prior year, with a gross margin of 26.8%, down 60 basis points[3][6]. - Gross profit for Q1 2025 was $8,900,258, up from $8,413,483 in Q1 2024, reflecting a gross margin improvement[24]. - The company reported an operating loss of $1.3 million and a net loss attributable to shareholders of $0.6 million for Q1 2025[6][10]. - Net loss attributable to FGI Industries Ltd. shareholders was $629,092 in Q1 2025, compared to $412,189 in Q1 2024, indicating a worsening loss situation[24]. - Adjusted Operating Loss for Q1 2025 was $1,260,953, compared to a loss of $199,445 in Q1 2024, highlighting increased operational challenges[27]. - The company reported a comprehensive loss of $729,125 in Q1 2025, compared to $560,437 in Q1 2024, indicating increased overall financial strain[24]. - Adjusted Net Loss for Q1 2025 was $1,072,383, compared to $197,476 in Q1 2024, showing a significant deterioration in profitability[27]. Operating Expenses - Operating expenses increased by 16.6% year-over-year to $10.2 million, driven by investments in growth initiatives[4]. - Operating expenses increased to $10,181,117 in Q1 2025 from $8,734,417 in Q1 2024, primarily due to higher selling and distribution costs[24]. Cash Flow and Liquidity - Total liquidity as of March 31, 2025, was $14.3 million, consisting of $1.2 million in cash and cash equivalents and $13.0 million available under credit facilities[12]. - Cash used in operating activities was $1,651,686 in Q1 2025, a significant decrease from $7,989,899 in Q1 2024, indicating improved cash flow management[25]. - Total cash at the end of Q1 2025 was $1,226,365, down from $3,319,066 at the end of Q1 2024, reflecting ongoing liquidity pressures[25]. Strategic Initiatives - FGI continues to invest in new product introductions and growth initiatives, particularly in its digital custom kitchen joint venture, Isla Porter[3][4]. - The company is navigating a challenging tariff environment while maintaining strong relationships with suppliers and customers[4]. Foreign Currency Impact - The company experienced a foreign currency translation adjustment gain of $86,432 in Q1 2025, contrasting with a loss of $22,578 in Q1 2024, reflecting currency fluctuations[24].

Core Insights - FGI Industries Ltd. reported total revenue of $33.2 million for Q1 2025, marking an 8.0% increase year-over-year, driven by growth in Bath Furniture and Covered Bridge cabinetry businesses [2][4] - Gross profit reached $8.9 million, a 5.8% increase from the previous year, although gross margin declined to 26.8% due to tariffs and higher freight costs [5][6] - The company experienced an operating loss of $1.3 million, compared to an operating income of $0.3 million in Q1 2024, attributed to increased operating expenses [8][9] Financial Performance - Revenue breakdown: Sanitaryware revenue decreased to $20.2 million, Bath Furniture revenue increased to $4.1 million, Shower Systems revenue decreased to $5.7 million, and other revenue from Kitchen Cabinets rose to $3.3 million [7] - Operating expenses increased by 16.6% year-over-year to $10.2 million, driven by investments in growth initiatives and one-time costs [3][8] - The net loss attributable to shareholders was $0.6 million, or $0.07 per diluted share, compared to a net income of $0.4 million, or $0.04 per diluted share, in the same period last year [9][21] Market Dynamics - The company noted an uncertain industry outlook due to the ongoing tariff environment, but emphasized that strategic investments are yielding revenue growth above the overall market [2][3] - Revenue growth was observed in the U.S. (8.0%) and Canada (3.8%), while Europe saw a decline of 2.8% [2] - The company is focused on expanding its digital custom kitchen joint venture, Isla Porter, to enhance relationships with the premium design community [2] Liquidity and Capital Management - As of March 31, 2025, FGI had total liquidity of $14.3 million, with $1.2 million in cash and cash equivalents and total debt of $13.2 million [11] - The company plans to prioritize internal investments for future growth initiatives [3]

Revenue Performance - Revenue increased by $14.6 million, or 12.4%, to $131.8 million for the year ended December 31, 2024, compared to $117.2 million in 2023[228] - Revenue from sanitaryware accounted for 61.5% of total revenue in 2024, with sales increasing by 7.4% to $81.1 million[230] - Revenue from shower systems increased by 27.6% to $25.5 million for the year ended December 31, 2024, representing 19.4% of total revenue[232] - Revenue generated in the United States increased by 10.5% to $82.4 million, accounting for 62.5% of total revenue in 2024[234] - The Company reported revenue of $131,818,073 for the year ended December 31, 2024, compared to $117,241,604 for the year ended December 31, 2023, reflecting an increase of approximately 12.5%[292] Profitability and Loss - The company reported a net loss of $1.7 million for the year ended December 31, 2024, compared to a net income of $579,564 in 2023, representing a decline of 399.2%[226] - Adjusted Operating Loss Income for the year ended December 31, 2024, was $(1,613,635), compared to an Adjusted Operating Income of $2,840,401 for the year ended December 31, 2023[292] - Adjusted Operating Margins decreased to -1.2% in 2024 from 2.4% in 2023, indicating a decline in operational efficiency[292] - The Company incurred a loss before income taxes of $(2,282,098) in 2024, compared to income before income taxes of $1,387,788 in 2023[292] - Adjusted Net Loss Income for the year ended December 31, 2024, was $(939,648), a significant decrease from Adjusted Net Income of $1,731,512 in 2023[292] Expenses - Selling and distribution expenses increased by $5.7 million, or 28.3%, to $25.6 million for the year ended December 31, 2024, driven by higher personnel costs and expanded marketing activities[238] - Research and development expenses increased by 23.4% to $1.7 million for the year ended December 31, 2024, reflecting continued investment in product innovation[226] - Total other expenses decreased by approximately $0.7 million or 80.1%, to $0.2 million for the year ended December 31, 2024, from $0.9 million for the year ended December 31, 2023[242] - Business expansion expenses were recorded at $247,080 in 2024, consistent with $247,082 in 2023, indicating stable investment in growth initiatives[292] Cash Flow and Liquidity - Total liquidity as of December 31, 2024, was $15.6 million, providing sufficient financial flexibility for organic growth strategies[224] - As of December 31, 2024, the company had cash and working capital of $4.6 million and $10.4 million, respectively[245] - Net cash used in operating activities was approximately $7.4 million for the year ended December 31, 2024, reflecting strategic investments and working capital fluctuations[259] - Net cash provided by financing activities was approximately $7.5 million for the year ended December 31, 2024, compared to net cash used of $2.8 million in 2023[262] Capital Expenditures and Debt - Capital expenditures amounted to approximately $2.9 million and $1.8 million for the years ended December 31, 2024 and 2023, respectively[263] - The outstanding balance of the East West Bank loan was $9.6 million as of December 31, 2024, compared to $7.0 million in 2023[251] - The interest rate on the East West Bank loan was 7.25% as of December 31, 2024, down from 8.25% in 2023[250] - FGI Canada Ltd. has a line of credit agreement with RBC allowing for borrowing up to CAD7.5 million (USD5.2 million) as of December 31, 2024[252] - The CTBC Credit Line was increased to $3.0 million on January 14, 2025, from $2.3 million[256] Strategic Initiatives - The company entered into a 5-year licensing agreement for an industry-leading overflow toilet technology, expected to enhance product offerings[224] - The Company’s revenue recognition follows ASC 606, with revenue recognized upon transfer of control of goods or services to customers[274] - Payment terms for customers generally range from 15 to 60 days, impacting cash flow and revenue recognition timing[274] - The Company utilizes non-GAAP measures such as Adjusted Operating Income and Adjusted Net Income to provide additional insights into financial performance[288]

Core Insights - FGI Industries Ltd. reported fourth-quarter 2024 results with revenues exceeding estimates and showing year-over-year growth, although earnings declined due to new business costs and promotional expenses [1][3][6] Revenue Performance - Total revenues for Q4 2024 reached $35.6 million, surpassing the Zacks Consensus Estimate of $32.8 million by 8.5% and increasing 15% from the previous year [3] - For the full year 2024, total revenues increased by 12.4% year over year to $131.8 million [7] Segment Analysis - Revenues in the Sanitaryware segment rose 5.8% year over year to $21.8 million [4] - Bath Furniture revenues surged 40.2% year over year to $3.5 million, attributed to new business wins and market-aligned pricing [4] - Shower Systems segment revenues grew 17% year over year to $6.7 million, driven by steady demand and increased sales [4] - Other revenues, primarily from Kitchen Cabinets, increased by 68.3% year over year to $3.6 million, supported by order momentum and expanded dealer count [5] Operating Expenses and Margins - Total operating expenses for Q4 were $10 million, up 28.4% year over year, leading to a gross margin contraction of 460 basis points to 24.6% [6] - For the full year 2024, total operating expenses were $37.5 million, an increase from $29.8 million the previous year, with a gross margin of 26.9%, down 50 basis points year over year [7] Balance Sheet Overview - As of December 31, 2024, FGI Industries had a cash balance of $4.6 million, down from $7.8 million at the end of 2023 [8] - Total liquidity stood at $15.6 million, including $11 million available under credit facilities [8] - Total debt increased to $14.5 million at the end of 2024, up from $7 million a year ago [8] Future Outlook - FGI Industries expects net revenues for 2025 to be in the range of $135 million to $145 million [10]

Financial Data and Key Metrics Changes - FGI reported total revenue of $35.6 million in the fourth quarter, representing a year-over-year increase of 15% [8][16] - Gross profit was $8.7 million, a decrease of 3.2% compared to the prior year, with gross margin declining to 24.6% from 29.2%, a drop of 460 basis points [8][16] - Operating expenses increased by 28.4% to $10 million from $7.8 million in the prior year, primarily due to investments in growth initiatives [17] - GAAP operating income was negative $1.3 million in the quarter, down from a positive $1.2 million in the prior year [17] Business Line Data and Key Metrics Changes - Bath Furniture revenue increased by 40.2% year over year, driven by market-aligned pricing and new business wins [10] - Shower Systems business reported a revenue increase of 17%, supported by new customer programs and order growth [11] - Covered Bridge revenue in custom kitchen cabinetry increased by 68.3% due to order momentum and expanded geographies [11] Market Data and Key Metrics Changes - Revenue grew by 14.7% in the US, 9.9% in Canada, and 23.3% in Europe during the quarter [10] - Sanofi revenue increased by 5.8% year over year in the fourth quarter [10] Company Strategy and Development Direction - The company is focused on organic growth initiatives across brands, products, and channels, referred to as the BPC strategy [7] - Geographic expansion in Europe and India is seen as a significant growth driver for upcoming quarters [12] - The company is actively working to diversify sourcing in response to the increasing tariff environment [13][25] Management's Comments on Operating Environment and Future Outlook - The industry outlook is relatively flat, with minimal growth expected in 2025, but the company anticipates outpacing the market through its BPC strategy [9][27] - Management expressed confidence in new programs and business wins to drive growth despite a flat market [50][55] - Tariff pressures are acknowledged as a significant factor impacting the business outlook, with management taking a conservative approach in guidance [35][36] Other Important Information - The company has $15.6 million in total liquidity, deemed sufficient to fund growth initiatives [18] - Initial 2025 revenue guidance is set between $135 million and $145 million, with adjusted operating income guidance ranging from negative $2 million to positive $1.5 million [18] Q&A Session Summary Question: Impact of tariffs on the business - Management is working closely with suppliers and customers to mitigate tariff impacts and is diversifying sourcing to navigate the situation [22][24][25] Question: Outlook for operating income - The guidance includes tariff pressures, with a conservative approach taken due to the fluid nature of the situation [33][35] Question: Pricing strategies in response to tariffs - The company adjusts pricing as necessary and works with customers on timing and inventory mix to manage tariff costs [39][41] Question: Sourcing adjustments due to tariffs - The company is actively diversifying sourcing to mitigate tariff impacts, with ongoing adjustments being made [44][45] Question: Risks and upside in the R&R market - The overall R&R market outlook remains flat, but new programs and business wins are expected to buffer against this [49][50]