Q.E.P. CO., INC. REPORTS FISCAL 2026 FULL YEAR FINANCIAL RESULTS
BOCA RATON, FLORIDA — June 1, 2026 — Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today reported financial results for its fiscal year ended February 28, 2026.
Net sales for fiscal 2026 were $233.7 million, compared to $243.8 million for fiscal 2025, a decrease of $10.1 million, or 4.1%. The decrease primarily reflected continued softness in home improvement spending, which the Company believes was influenced by elevated interest rates, inflationary pressures and broader macroeconomic uncertainty. The Company continued to invest in its sales organization and customer development initiatives during fiscal 2026.
Gross profit for fiscal 2026 was $82.6 million, compared to $86.6 million in the prior year, a decrease of $4.0 million or 4.5%. As a percentage of net sales, gross margin was 35.4% in fiscal 2026, compared to 35.5% in fiscal 2025. Gross margin during fiscal 2026 reflected the impact of increased tariffs, which were partially offset by inventory purchases made prior to tariff implementation.
Operating expenses were $64.5 million, or 27.6% of net sales, for fiscal 2026, compared to $66.8 million, or 27.4% of net sales, in fiscal 2025. The decrease in operating expenses primarily reflected lower variable freight costs and reduced administrative expenses, which were partially offset by continued investments in sales and marketing personnel and infrastructure.
Operating income for fiscal 2026 was $18.2 million, compared to $19.8 million for fiscal 2025.
Interest income, net, was $0.9 million for both fiscal 2026 and fiscal 2025.
The provision for income taxes as a percentage of income before taxes was 22.5% for fiscal 2026, compared to 24.1% for fiscal 2025.
Net income for fiscal 2026 was $15.8 million, or $4.90 per diluted share, compared to $16.3 million, or $4.94 per diluted share, for fiscal 2025. Net income from continuing operations for fiscal 2026 was $14.8 million, or $4.59 per diluted share, compared to $15.7 million, or $4.78 per diluted share, for fiscal 2025.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for fiscal 2026 was $19.8 million, or 8.5% of net sales, compared to $22.2 million, or 9.1% of net sales, for fiscal 2025. Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income from continuing operations is included in this press release.