WOONSOCKET – Summer Infant Inc. reported a net loss of $1.2 million for the 2017 third quarter this week, with a loss per diluted share of 7 cents.
In the third quarter of 2016, the company posted a 233,000 profit with 1 cent earnings per diluted share.
Net sales for the quarter totaled $43.1 million, a year-over-year decline of $5.4 million.
“The company was negatively affected by the Toys R Us bankruptcy filing this quarter, with revenue lighter than expected due to delayed shipments to Babies R Us as well as ongoing weak monitor performance,” said Mark Messner, president and CEO.
Specifically, the company attributed $2.3 million of its 11.2 percdent revenue decline to the Toys R Us bankruptcy and related orders due to a reduction of sales at Babies R Us.
“In addition, it was necessary to take a $2.1 million charge to write-down certain receivables that were outstanding prior to the bankruptcy filing – impacting Summer Infant’s bottom line results. However, we currently do not anticipate post-bankruptcy-filing receivables from Toys R Us to be at risk in the short term and are shipping product to this customer in a prudent and appropriate manner,” he said.
Messner remained positive for the company’s growth going forward.
“Looking ahead, we expect fourth-quarter shipments to be more positive – reflecting restocking of customer inventory as well as some exciting brand extensions and product introductions, including within the monitor space. We do not believe the third quarter is indicative of the progress we’ve made in streamlining our operations, bolstering the balance sheet, refocusing our channel strategy, and investing for growth, all of which we anticipate will positively impact our financial performance in the years to come.”
Chris Bergenheim is the PBN web editor.
