Overview

* FGI Industries ( FGI ) 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/Mis Actual Consensu

s s

Estimate

Q3 Miss $35.8 $37.7

Revenue mln mln (2

Analysts

)

Q3 Beat $0.13 $0.08 (2

Adjusted Analysts

EPS )

Q3 Beat $200,000 $168,500

Adjusted (2

Net Analysts

Income )

Q3 Gross 26.50%

Margin

Q3 Miss $400,000 $550,000

Adjusted (2

Operatin Analysts

g Income )

Q3 Gross $9.5 mln

Profit

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

Press Release:

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(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.)