Koss(US:KOSS)2025-10-30 21:20Financial Performance - For the first quarter ended September 30, 2025, net sales were $4,070,778, an increase of $868,910 or 27.1% compared to $3,201,868 in the same period last year[3] - Net income for the quarter was $243,729, a significant improvement from a net loss of $419,535 in the first quarter of the prior fiscal year[3] - Gross margins improved by 340 basis points, rising from 36.6% to 40.0%, primarily due to a favorable customer and market mix[4] Sales and Market Trends - Direct-to-consumer (DTC) sales grew by 22.5%, contributing to overall sales success despite a decline in European sales[4] - The company faced challenges with gross margins due to a 145% tariff on China-produced goods but managed to offset some impacts through better fixed cost absorption[5] Expenses and Income - Selling, general and administrative expenses for the quarter were $1,674,732, down from $1,810,059 in the prior year[10] - Interest income increased to $293,128 from $220,358 in the same quarter last year[10] Shareholder Information - The weighted-average number of basic shares outstanding increased to 9,456,438 from 9,310,002 year-over-year[10] Management and Strategy - The company continues to monitor the tariff landscape closely to mitigate potential negative impacts on operations[5] - Michael J. Koss, Jr. was promoted to Executive Vice President, reflecting his contributions to product development and DTC growth[6]