Following a robust upward trend in the previous session, iPower Inc. (NASDAQ: IPW) stock is undergoing a correction today. As of the most recent pre-market check, IPW stock had decreased by 7.27% to $2.68. This decrease follows an astounding 97.95% increase that saw the session close at $2.89. The disclosure of its financial results affected the stock’s movement.
Quarterly Highlights
In the third quarter of fiscal 2024, iPower saw a 15% rise in overall revenue, amounting to $23.3 million. The business had a 41% increase in gross profit to $10.9 million, and an 850 basis point increase in gross margin to 47.0%.
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Double-digit sales growth, a notable increase in gross margin, and improved operational leverage characterized iPower’s robust third-quarter financial performance, all of which helped the company generate a profit.
As expected, iPower experienced higher order volumes from its largest channel partner, which has normalized its inventory position and purchasing cycle. The company plans to continue investing in its product catalog to ensure it meets the growing demand across various sales channels.
Strategic Shifts And Business Expansion
iPower is also gaining traction with its SuperSuite supply chain business, which significantly contributed to the top-line growth this quarter and now represents approximately 10% of total revenue.
This new business segment not only supports iPower’s growth but also provides valuable insights to enhance the company’s internal capabilities. In April, iPower expanded its sales channels by launching on Temu, and has observed promising early results in the kitchen and pet categories.
iPower intends to leverage its expertise in supply chain, fulfillment, and merchandising to drive sales for innovative product companies, as it navigates its growing pipeline of prospective partners.
In recent years, iPower has strategically shifted its focus away from hydroponics to concentrate on its core competency as a data-driven consumer products and services company.
The company has recently begun to wind down its legacy commercial hydroponics business, previously sold directly to local commercial distributors, and is currently working through the remaining inventory to completely exit this channel.
These initiatives, along with the accelerating growth in the SuperSuite business and an optimized cost structure, have enabled iPower to achieve impressive results this quarter and return to profitability. iPower anticipates closing out the fiscal year on a strong note as it continues to execute its strategic objectives in the coming months.
