Q.E.P. Reports Record Q1 Sales

Sales grow 19.4 percent for quarter year over year.

Q.E.P. Co., Inc. (OTC: QEPC) reports its consolidated results of operations for the first quarter of its fiscal year ending February 28, 2014. The Company reported record net sales of $83.4 million for the three months ended May 31, 2013, an increase of $13.6 million or 19.4% from the $69.8 million reported in the same period of fiscal 2013.

As a percentage of net sales, gross profit was 28.4% in the first three months of fiscal 2013 compared to 28.9% in the first three months of fiscal 2013.

The growth in net sales for the quarter as compared to the fiscal year 2013 first quarter principally reflects the contribution of both North American and European acquisitions completed during the past twelve months.

Excluding acquisitions, net sales increased 3.3% quarter over quarter due to modest sales growth in both North America and certain international operations partially offset by the effects of competitive pricing pressures in North America and, to a lesser degree, international markets.

The Company’s gross margin was 28.4% for the first quarter of fiscal 2014 as compared to 28.9% for the first quarter of the prior fiscal year. The decrease in margin as compared to the first quarter of the prior fiscal year principally reflects price reductions and product mix changes coupled with cost increases on certain raw materials.

In addition, the purchasing power of the company's international operations weakened as the US dollar strengthened during the first quarter of fiscal 2014.

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