Klipsch Income Up This Fiscal Year on Strategy to Pare Unprofitable Distribution

Fiscal Q3 sales in the premium audio segment at Voxx declined $7.7 million due to the company’s decision to pare unprofitable online distribution of the Klipsch brand, said CEO Pat Lavelle on an earnings call Thursday streamed live from CES, where Voxx was a Central Hall exhibitor. The strategy is “working, as gross margins are up and the segment is more profitable,” he said. Pretax income in the segment year to date is running $8 million higher than a year earlier, he said. Klipsch will launch an “exclusive” soundbar and subwoofer program in March “for direct import with Amazon,” he said. Klipsch also signed a partnership agreement, making it the “official speaker supplier” of First Watch restaurants, which runs 200 breakfast locations in 26 states, he said. “We are also in discussions with a number of other large global organizations, and success with just one or two of them should help drive performance and heightened visibility of the Klipsch brand.”