AXIL Brands, Inc.

AXIL Brands reported first-quarter fiscal 2027 net income of $420,571, up 25.8% from $334,294 a year earlier, even as net revenues fell 11.2% to $6.1 million from $6.9 million. Earnings per share rose to 5 cents from 4 cents, gross profit increased 8.6% to $5 million and gross margin expanded to 82.6% from 67.6%, though excluding a non-recurring customs-duty refund benefit the gross margin was 73.6%. The revenue decline reflected the planned transition from first-generation XCOR to XCOR II and the absence of a material big-box retail order recorded in the year-ago quarter, while profitability benefited from $550,929 of refunded IEEPA customs duties recognized as a reduction of cost of revenues. Management highlighted the XCOR II launch as the quarter's principal operating development, with orders exceeding $2.8 million by Aug. 26 and reaching more than $3.6 million by Sept. 30 across retail, distribution and direct-to-consumer channels, and said the quarter's results did not yet reflect the new product's revenue contribution. AXIL expects fiscal 2027 net revenues and net income to increase from fiscal 2026 levels, with improvement becoming more evident beginning in the fiscal second quarter, and brought three strategic partners into Reviv3 ProCare Company with roughly a 25% ownership interest while retaining approximately 75%.