HomesToLife Ltd. reported a nine‑month net revenue of $275.0 million, up 15% from $240.5 million in the same period a year earlier, and a net income of $13.2 million, a 71% increase over the $7.7 million reported for 9M 2024. Earnings per share rose to $0.15 from $0.09, reflecting stronger export sales and a $4.5 million gain from favorable foreign‑exchange movements that helped offset a $5.8 million freight‑cost spike caused by the Suez Canal disruption. Gross profit climbed to $76.1 million, lifting the gross margin to 27.7% from 25.5% a year earlier, while operating expenses grew 18% to $62.1 million, largely due to the freight cost increase and $1.3 million in start‑up costs associated with the South Korea retail acquisition. Cash and bank balances stood at $21.8 million, with short‑term trade financing borrowings of $10.1 million, and net cash generated from operating activities was $4.0 million, underscoring a solid liquidity position as the company expands its integrated retail and wholesale operations.
The revenue growth was driven by a 20% increase in Europe and an 11% rise in North America, the two key export markets for HomesToLife. The company’s diversified export model allowed it to capture demand across multiple regions, while pricing power in high‑margin product lines helped offset the freight‑cost headwind. The strong performance in these markets also contributed to the overall 15% revenue increase, demonstrating resilience amid global supply‑chain disruptions.
Gross margin expansion to 27.7% was largely a result of improved pricing power and a favorable product mix, with higher‑margin categories offsetting the impact of the freight‑cost spike. The $4.5 million foreign‑exchange gain further cushioned the cost pressure, allowing the company to maintain profitability even as operating expenses rose. The margin improvement signals that HomesToLife’s cost‑control initiatives and pricing strategy are effective, providing a buffer against future logistics cost volatility.
Operating expenses increased 18% year‑over‑year, driven by the $5.8 million freight‑cost spike and $1.3 million in start‑up costs for the South Korea acquisition. Despite the higher expense base, the company generated $4.0 million in net cash from operating activities, indicating that the earnings growth is supported by solid cash flow generation. The company’s cash position of $21.8 million, combined with $10.1 million in short‑term trade financing, gives it ample liquidity to fund ongoing expansion and integration activities.
Management reaffirmed the fiscal‑year 2025 revenue guidance of $360–$375 million, unchanged from the previous forecast, reflecting confidence in continued export growth and the expected contribution from the recently completed acquisition of HTL Marketing Pte. Ltd. on May 19, 2025. CEO Phua Mei Ming emphasized that the company’s “diversified export model and disciplined cost control” position it well for the upcoming peak season and long‑term growth. The guidance, coupled with the strong quarterly performance, signals a positive outlook for the remainder of the year.
The acquisition of HTL Marketing, completed in May, is a strategic move to strengthen design, product development, and merchandising capabilities, expanding HomesToLife’s global reach. While analyst consensus estimates for the quarter were not available, the company’s robust earnings beat and margin expansion provide a solid foundation for future growth. No market‑reaction data were reported, but the company’s financial health and strategic initiatives suggest a favorable trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.