Release Date: September 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more color on revenue growth, particularly from your large online partner and new platforms like TikTok Shop and Temu? A: The majority of sales still come from Amazon, but new platforms like TikTok Shop and Temu are showing promising initial results. SuperSuite has seen healthy growth with multiple new partners onboarded. We also signed up with Ali Express, which will benefit us as it competes in the US online retail market. (Chenlong Tan, CEO)
Q: Can you expand on the demand side from your large channel partner and the return to normalized ordering? A: We saw a strong rebound in March after a slow December quarter. The current quarter reflects more normalized ordering patterns, suggesting a return to pre-COVID inventory management. This normalization is beneficial for steady growth and inventory turnaround. (Kevin Vassily, CFO)
Q: What is the outlook for new customer additions to the SuperSuite in 2025? A: We have onboarded significant supply chain partners and are working on technologies to reduce onboarding complexity. This will enable us to attract more partners through our business development channels. (Chenlong Tan, CEO)
Q: What percentage of sourcing will come from Vietnam, and how will this impact gross margins? A: The Vietnam initiative is just beginning but will grow. It will save on the cost of goods sold, enhancing profitability and competitiveness. However, these benefits will accrue in future quarters as the transition takes time. (Chenlong Tan, CEO; Kevin Vassily, CFO)
Q: Are the new manufacturers in Vietnam different from those in China? A: Yes, the new manufacturers in Vietnam are different. Some of our Chinese suppliers are also moving production lines outside China, but the specific ones in Vietnam are new supply chain partners. (Chenlong Tan, CEO)
Q: How are specific product categories performing? A: Home, pet, and furniture categories remain top sellers. Hydroponics is no longer a significant part of overall sales. Future growth is expected in home, furniture, pet, and electronics categories. (Chenlong Tan, CEO; Kevin Vassily, CFO)
Q: What is the current state of the hydroponics market? A: The demand environment for hydroponics is weak, and it has become a less meaningful portion of our overall sales. We don't expect significant growth in this area soon. (Kevin Vassily, CFO)
Q: How does iPower plan to leverage its technology and data-driven approach for future growth? A: Our core strength lies in our technology and data platforms, such as our ERP systems and business intelligence platforms. These enable efficient merchandising and distribution, which will drive future growth. (Chenlong Tan, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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