Overview

* FGI Q2 revenue rises 5.5% y/y but misses analyst expectations, per LSEG data

* Adjusted net loss of $1.2 mln misses analyst estimates, per LSEG data

* Gross margin declines 240 bps due to ongoing tariff environment

Outlook

* FGI Industries ( FGI ) reiterates fiscal 2025 revenue guidance of $135-145 mln

* Company expects fiscal 2025 adjusted operating income of $(2.0)-1.5 mln

* FGI sees fiscal 2025 adjusted net income of $(1.9)-1.0 mln

Result Drivers

* TARIFF IMPACT - Gross margin declined due to ongoing tariffs and higher freight costs

* PRODUCT MIX - Revenue growth driven by Sanitaryware, Bath Furniture, and Covered Bridge cabinetry, while Shower Systems declined

* GEOGRAPHIC DIVERSIFICATION - FGI exploring China+1 strategy to diversify sourcing and mitigate tariff impacts

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $31 mln $32.70

Revenue mln (2

Analysts

)

Q2 Miss -$0.61 -$0.03

Adjusted (2

EPS Analysts

)

Q2 Miss -$1.20 $11,000

Adjusted mln (2

Net Analysts

Income )

Q2 Gross 28.1%

Margin

Q2 Gross $8.70

Profit 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 ( FGI ) is $8.75, about 55.5% above its August 8 closing price of $3.89

Press Release:

(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.)