Virco Manufacturing ( (VIRC) ) has released its Q1 earnings. Here is a breakdown of the information Virco Manufacturing presented to its investors.
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Virco Manufacturing Corporation is a Delaware-based company specializing in the production and distribution of furniture for educational institutions, operating primarily in the educational furniture sector. Known for its seasonal sales patterns, Virco serves a wide range of customers including wholesalers, distributors, and government entities.
In its latest earnings report for the quarter ending April 30, 2025, Virco reported a net income of $0.7 million on sales of $33.8 million, a decrease from the previous year’s net income of $2.1 million on sales of $46.7 million. The decline in revenue was attributed to the absence of one-time disaster recovery orders that had boosted the prior year’s performance.
Key financial metrics revealed a gross margin increase to 47.5% from 43.5% in the previous year, driven by a higher proportion of full-service order deliveries. Selling, general, and administrative expenses saw a reduction of approximately $1.3 million due to lower variable selling expenses. Additionally, the company realized $1.2 million in unrealized gains from its investments in a Rabbi Trust.
Looking ahead, Virco’s management remains cautious about future growth rates, citing uncertainties related to trade policies and macroeconomic conditions. The company plans to continue investing in operational systems and employee training to navigate these challenges and capitalize on potential opportunities in the domestic market.