Q.E.P. CO., INC. REPORTS FISCAL 2025 NINE MONTH AND THIRD QUARTER FINANCIAL RESULTS
Nine Month Adjusted Net Income Grows to $12.3 Million or $3.74 per Share
BOCA RATON, FLORIDA — January 14, 2025 — Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today reported its consolidated results of operations for the first nine months and third quarter of fiscal year 2025, which ended on November 30, 2024.
Results of Operations
During the prior fiscal year, QEP completed the sale of its Harris Flooring Group in North America and its businesses in the United Kingdom, Australia and New Zealand in order to streamline operations and concentrate resources on its core product lines in the North American market. These divested operations have been classified as discontinued operations in our financial statements for all periods presented.
QEP reported net sales of $187.1 million for the nine months ended November 30, 2024, a decrease of $2.9 million or 1.5% from the $190.0 million reported in the same period of fiscal 2024. The Company reported net sales of $61.1 million for the quarter ended November 30, 2024, an increase of $1.0 million or 1.6% from the $60.1 million reported in the same period of fiscal 2024. The third quarter of fiscal 2025 increase in net sales was due to the slight increase in consumer spending on home improvement projects as interest rates and inflationary pressures were reduced compared to earlier in the fiscal year.
The Company’s gross profit for the first nine months of fiscal 2025 was $66.5 million compared to $61.0 million in the corresponding fiscal 2024 period, an increase of $5.5 million or 9.0%. Gross profit for the third quarter of fiscal 2025 was $21.7 million, representing an increase of $1.7 million or 8.5%, from $20.0 million in the corresponding fiscal 2024 period. The Company’s gross margin as a percentage of net sales for the first nine months and third quarter of fiscal 2025 was 35.5% in both periods, which increased from 32.1% and 33.3% in the same periods of the prior fiscal year, respectively. The increase in gross margin as a percentage of net sales was largely due to lower inbound freight costs, improved product sourcing and other cost reduction initiatives.
Leonard Gould, President & Chief Executive Officer, commented on the Company’s results, “QEP’s third quarter results continue to confirm the successful affirmation of our strategic plan. Our relentless focus on ‘Product Innovation’ and ‘Shipping Complete’ proves to be a winning combination. We are just getting started but it is gratifying to see our efforts clearly resonating as our share of the Flooring Professional continues to grow. This could not have been accomplished without the hard work and dedication of many different teams across QEP.
While much of the world is in flux, QEP continues its focus excited and invigorated with a strong foundation to greet 2025.”