AXIL Brands(US:AXIL) Globenewswire·2025-10-07 10:05Core Insights - AXIL Brands, Inc. reported a 17% year-over-year revenue growth in the first quarter of fiscal 2026, driven by a shift towards retail channels and initial shipments to a new national membership-based retail chain [3][4][6]. Financial Performance - Net sales for 1Q26 were $6.9 million, up from $5.9 million in the prior year, marking a 17.2% increase [6]. - Gross profit margin decreased to 67.6% in 1Q26 from 71.0% in the prior year [6]. - Operating expenses remained flat year-over-year at 61.6% of net sales, improving from 73.4% in the prior year [6]. - Operating income improved to $0.4 million (6.0% of revenue) in 1Q26, compared to an operating loss of $0.1 million (-2.4% of revenue) in the prior year [6]. - Net income was $0.3 million in 1Q26, a turnaround from a net loss of $0.1 million in the prior year [6]. - Adjusted EBITDA increased by 291.3% to $0.7 million in 1Q26 from $0.2 million in the prior year [6]. Business Strategy - The company has focused on diversifying its revenue channels, balancing online sales with offline retail and international distribution [5][8]. - The introduction of new products and expansion into retail distribution channels, such as Costco, is part of the strategy to enhance brand visibility and profitability [10][11]. Product Development - AXIL plans to launch several new products, including the next-generation GS Extreme 3.0, in the upcoming quarters [9]. - The company aims to strengthen its hair and skincare segment, which has been underdeveloped, by adding experienced leadership and expanding its product offerings [11]. Balance Sheet and Cash Flow - As of August 31, 2025, cash on hand was $4.1 million, down from $4.8 million as of May 31, 2025 [10]. - Inventory levels increased due to higher product supply for the wholesale segment, which is expected to normalize over time [10].