FGI Industries 2025 Q1 Earnings Revenue Up 8% Amid Wider Losses

FGI Industries (FGI) reported its fiscal 2025 Q1 earnings on May 14th, 2025. FGI Industries reported an 8.0% increase in total revenue to $33.21 million compared to the previous year. However, the company's net loss widened significantly to $-815,557, or $0.07 per share, a 51.6% increase from 2024. The company attributed these losses to increased tariffs and rising freight costs. Looking forward, FGI Industries maintained its guidance for fiscal year 2025, projecting total net revenue between $135 and $145 million, while acknowledging ongoing challenges from tariffs and strategic investments.

Revenue
FGI Industries achieved a total revenue increase of 8.0% to $33.21 million in Q1 2025 compared to $30.75 million in Q1 2024. The Sanitaryware segment contributed $20.16 million, while Bath Furniture saw a notable rise to $4.10 million. The Shower System segment provided $5.69 million, and the Others category accounted for $3.27 million, culminating in the overall total of $33.21 million.

Earnings/Net Income
FGI Industries reported a deepened loss of $0.07 per share in Q1 2025 compared to a loss of $0.04 per share in Q1 2024. The net loss widened to $-815,557, marking a 51.6% increase from the previous year's $-537,859. This reflects a poor performance in earnings per share.

Price Action
The stock price of FGI Industries dropped 7.71% during the latest trading day, experienced a 6.12% decline over the past week, but showed a 12.17% increase month-to-date.

Post-Earnings Price Action Review
The strategy of buying FGI Industries stock in the event of a revenue miss and holding for 30 days led to significant losses, returning -84.44% and underperforming the benchmark by 113.70%. This approach demonstrated high risk, evidenced by a Sharpe ratio of -0.47 and a maximum drawdown of -90.51%. Investors faced substantial losses, highlighting the challenges of relying on this strategy in the current market environment. The findings underscore the need for a more cautious approach or reevaluation of this investment strategy, given its poor performance metrics.

CEO Commentary
Dave Bruce, President and CEO of FGI Industries, emphasized that the 8.0% increase in total revenue to $33.2 million was led by growth in Bath Furniture and Covered Bridge cabinetry. Despite the competitive and tariff-challenged environment, FGI's strategic investments are driving above-market revenue growth. Bruce expressed confidence in navigating tariff dynamics through strong supplier and customer relationships.

Guidance
The management highlighted the fluidity of the current tariff landscape and reiterated FGI's commitment to working closely with suppliers and customers. The company plans to focus on internal investments supporting core business growth and new product development. CFO Perry Lin confirmed that maintaining liquidity of $14.3 million will support growth efforts, with a focus on long-term value creation.

Additional News
FGI Industries recently announced a strategic partnership with Isla Porter, a digital custom kitchen joint venture, to enhance its product offerings through an AI-backed sales platform. This collaboration aims to strengthen relationships with the premium design community. Additionally, the company is investing in its Indian operations to optimize warehouse capabilities and expand its geographical reach. FGI is also actively exploring potential bolt-on acquisitions to bolster its product portfolio and market presence, aligning with its growth strategy in the home improvement sector.