Kitchen and Bath products supplier FGI Industries Q3 revenue misses estimates on tariff impact

Reuters
Nov 15
 Kitchen and Bath products supplier FGI Industries Q3 revenue misses estimates on tariff impact

Overview

  • FGI Industries Q3 revenue declines 0.7% y/y, missing analyst expectations

  • Adjusted EPS for Q3 beats consensus, reflecting strategic growth investments

  • Gross profit increases 2% y/y, driven by strategic pricing and cost management

Outlook

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

  • FGI sees strategic investments driving future revenue growth

  • Company evaluates China+1 strategy to diversify sourcing

Result Drivers

  • TARIFF IMPACT - Co cites ongoing tariff environment as a factor affecting revenue, with customers evaluating impact on their businesses

  • PRODUCT CATEGORY PERFORMANCE - Sanitaryware revenue grew 7% y/y, while Bath Furniture and Shower Systems declined 10.8% and 17.8% respectively

  • GEOGRAPHIC VARIANCE - Revenue increased in the U.S. and Europe by 1.3% and 7.3% respectively, but declined 8% in Canada

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$35.8 mln

$37.7 mln (2 Analysts)

Q3 Adjusted EPS

Beat

$0.13

$0.08 (2 Analysts)

Q3 Adjusted Net Income

Beat

$200,000

$168,500 (2 Analysts)

Q3 Gross Margin

26.50%

Q3 Adjusted Operating Income

Miss

$400,000

$550,000 (2 Analysts)

Q3 Gross Profit

$9.5 mln

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 $8.50, about 40.9% above its November 13 closing price of $5.02

Press Release: ID:nPn8tcNdFa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10