Overview

* Q.E.P. fiscal Q2 net sales down 7.8% yr/yr, impacted by economic uncertainty

* Company maintains gross margin despite sales decline, aided by pre-tariff inventory

* Operating expenses reduced due to lower freight and personnel costs

Outlook

* Company did not provide specific guidance for future quarters or the full fiscal year

Result Drivers

* ECONOMIC UNCERTAINTY - Elevated interest rates and consumer caution constrained home improvement spending, impacting sales

* PRE-TARIFF INVENTORY - Gross margin maintained through sell-through of inventory bought before tariff hikes

* LOWER OPERATING EXPENSES - Reduction in operating expenses due to lower freight and personnel costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales $57.66

mln

Q2 Gross $20.59

Profit mln

Q2 $16.04

Operatin mln

g

Expenses

Q2 $4.54

Operatin mln

g Income

Q2 $4.78

Pretax mln

Profit

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)