Summer Infant Q1 Sales Drop 5% On Supply Chain Issues
$SUMR
Office Equipment/Supplies/Services
Capital Goods
- Summer Infant Inc (NASDAQ:SUMR) reported a first-quarter FY22 sales decline of 5% year-on-year to $34.38 million, versus $36.20 million the previous year.
- The company attributed the revenue decline to ongoing supply chain disruptions, including some COVID-19 caused production delays.
- The gross profit decreased 31.8% Y/Y to $7.3 million and the profit margin contracted by 830 basis points to 21.1%.
- The operating loss for the quarter was $(3.5) million versus an operating income of $0.7 million last year.
- The company held $0.6 million in cash and equivalents as of April 2, 2022.
- Adjusted EBITDA was a $(1.1) million loss versus $2.1 million a year ago. Adjusted EBITDA margin was (3.1)% versus 5.7% last year.
- EPS loss of $(1.81) versus a profit of $0.12 last year reflects elevated supply chain expenses, inefficiencies, and increased product costs.
- The company remains on track to complete its previously-announced merger with Kids2, Inc. during the second quarter.
- Price Action: SUMR shares are trading higher by 0.86% at $11.75 on the last check Tuesday.