FGI Industries Ltd. FGI is increasingly reshaping its growth strategy as tariffs and global trade uncertainty continue to pressure the kitchen and bath products industry. The company’s fourth-quarter 2025 results reflected the impact of this challenging environment, with revenues declining 14.4% year over year to $30.5 million. Management noted that customers delayed or paused certain orders as they evaluated changing tariff policies and sourcing costs.
In response, FGI is accelerating its “China+1” sourcing strategy to reduce dependence on China and improve supply-chain flexibility. During the earnings call, management confirmed that the company has secured additional partnerships outside China, including Thailand, while also exploring sourcing opportunities in other regions. The diversification strategy is aimed at reducing tariff exposure and creating a more stable long-term sourcing structure.
Tariffs are also influencing FGI’s product and channel priorities. The company is focusing more aggressively on higher-margin businesses and growth initiatives under its Brands, Products and Channels strategy. Despite weaker sales, gross margin expanded 210 basis points year over year to 26.7% in the fourth quarter, driven partly by better performance from higher-margin product categories.
FGI is also pushing geographic expansion to offset tariff-related disruption in core markets. The company continues to add dealers in India and expand its wholesale bath initiative in Germany, positioning itself for broader international growth.
