Q.E.P. CO., INC. REPORTS FISCAL 2025 FULL YEAR FINANCIAL RESULTS
BOCA RATON, FLORIDA — May 29, 2025 — Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today reported its financial results for the full fiscal year ended February 28, 2025.
These results follow the completion of a portfolio transformation in fiscal 2024, which included the divestiture of the Company’s Harris Flooring Group and international operations in the United Kingdom, Australia, and New Zealand. These actions were taken to sharpen the Company’s strategic focus on its core North American business and have been classified as discontinued operations in the financial results.
Net sales for the year ended February 28, 2025 were $243.8 million, down $8.2 million or 3.2% from $252.0 million reported in fiscal 2024. The decline in net sales was primarily due to a mixture of continued softness in home improvement spending due to elevated interest rates, inflationary headwinds and broader economic uncertainty. In response, the Company continues to expand its regional sales footprint while continuously targeting new and innovative products.
Gross profit for fiscal 2025 increased $4.6 million or 5.6% to $86.6 million, up from $82.0 million in the prior year. As a percentage of net sales, gross margin improved to 35.5% in fiscal 2025, up from 32.5% in fiscal 2024, driven largely by lower inbound freight costs, shifting of product sourcing to lower tariff countries and other structural cost reductions.
“Our strong financial results reflect the focused execution across the organization of our strategy and the resilience of our core business” said Len Gould, President & Chief Executive Officer. “We are unwavering in our commitment to the professional, and are experiencing the benefit of our investments in our domestic manufacturing capability and our extensive product innovations. When you combine these strengths with bulletproof fill rates and our industry experts, this is the result. These efforts position us well for long-term growth.”
“While we are encouraged by our performance, we remain vigilant in the face of continued global uncertainty — particularly as it relates to tariffs and evolving trade policy,” added Mr. Gould. “We are actively managing our sourcing and inventory strategies to mitigate potential risks and maintain service levels to our customers. Our long-term strategy remains unchanged: deliver value through operational excellence, product leadership, and customer focus.”
Operating expenses were $66.8 million or 27.4% of net sales for fiscal 2025, compared to $68.7 million or 27.3% of net sales in fiscal 2024, reflecting efficiencies from the Company’s reorganization efforts.
Interest income for fiscal 2025 improved to $0.9 million, compared to interest expense of $1.4 million in fiscal 2024 primarily as a result of significant debt reduction and increased cash balances.