FGI Industries Ltd. FGI reported fourth-quarter 2024 results, wherein revenues topped the Zacks Consensus Estimate and increased year over year. Meanwhile, earnings declined year over year due to costs related to new business and associated promotional expenses.

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Nonetheless, the company reported a significant revenue increase compared with the prior year, driven by growth across all businesses and geographies. While the overall industry remains flat, strategic investments in brands, products and channel strategies continue to support strong revenue growth above market levels. The company remains focused on expanding its core businesses through new product introductions and ongoing brand investments.

Inside FGI’s Q4 Numbers

In the quarter, the company reported an adjusted loss of 7 cents per share. FGI Industries reported an adjusted earnings per share of 9 cents in the prior-year quarter.

Total revenues of $35.6 million topped the consensus estimate of $32.8 million by 8.5%. The metric increased 15% from the year-ago quarter’s figure.

FGI’s Segmental Details

Revenues in the Sanitaryware segment increased 5.8% year over year to $21.8 million.

Bath Furniture revenues grew 40.2% year over year to $3.5 million, driven by new business wins and the shift to market-aligned program pricing and design.

Revenues in the Shower Systems segment grew 17% year over year to $6.7 million, driven by steady demand trends and increased sales of both existing and new products across a broader customer base.

Other revenues, primarily from Kitchen Cabinets, were $3.6 million in the quarter, up 68.3% year over year. This upside was backed by continued order momentum, expanded geographies and a higher dealer count.

Operating Highlights of FGI

Total operating expenses were $10 million, up 28.4% year over year. The gross margin contracted 460 basis points (bps) year over year to 24.6%.

2024 Highlights of FGI

In 2024, FGI Industries’ total revenues increased 12.4% year over year to $131.8 million. Total operating expenses were $37.5 million, up from $29.8 million reported a year ago. The gross margin was 26.9%, down 50 bps year over year.

FGI’s Balance Sheet

As of Dec. 31, 2024, FGI Industries had a cash balance of $4.6 million, down from $7.8 million at 2023-end. The company had a total liquidity of $15.6 million, including $11 million available under its credit facilities net of letters of credit.

Total debt amounted to $14.5 million at 2024-end, up from $7 million reported in the year-ago period.

What FGI Expects for 2025

FGI Industries expects net revenues to be in the band of $135-$145 million.

FGI’s Zacks Rank

FGI Industries currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks from the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI, Brinker International, Inc. EAT and Sprouts Farmers Market, Inc. SFM.

BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ's Restaurants delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has gained 10.5% in the past six months. The Zacks Consensus Estimate for BJRI’s 2025 sales and earnings per share (EPS) indicates growth of 3.3% and 17.7%, respectively, from the year-ago period’s levels.

Brinker currently sports a Zacks Rank of 1. EAT delivered a trailing four-quarter earnings surprise of 24.7%, on average. The stock has surged 99.4% in the past six months.

The Zacks Consensus Estimate for Brinker’s fiscal 2025 sales and EPS indicates a rise of 18.7% and 102.4%, respectively, from the year-ago period’s levels.

Sprouts Farmers currently carries a Zacks Rank of 2 (Buy). SFM delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 34.3% in the past six months.

The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 12% and 24.3%, respectively, from the year-ago period’s levels.

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FGI Industries Ltd. (FGI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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