PROVIDENCE – Summer Infant Inc., known as SUMR Brands, reported a $260,000 profit in the first quarter, or 12 cents per diluted share, compared with a $1.2 million loss in the first quarter a year ago, or 57 cents per diluted share, the company said Wednesday.
Revenue for the Woonsocket-based juvenile brands company in the quarter was $36.2 million, a decline from $40.3 million in the first quarter of 2020.
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Learn More“While first-quarter revenue was similar to that of the 2020 fourth quarter, sales were heavily impacted by supply chain constraints that undermined a significant increase in customer demand,” said CEO Stuart Noyes. “Even as last year’s pandemic-related disruptions continued to subside, the ongoing challenges tied to supplier shipments handicapped our ability to get product to market on time. This had a negative impact on top-line growth and reduced inventory levels substantially. We are, however, addressing these complex problems as rapidly as possible, mitigating issues where feasible and planning farther into the future to reduce shortages.”
The company also said that it reduced costs via various restructuring initiatives, lowered its outstanding debt and locked in better interest rates in a refinancing of its credit facilities last year.
“To address ongoing pressure from freight and other expenses, we are also looking at price increases wherever possible. We are pleased to see that recent stimulus measures, and the forthcoming child tax credit – as well as a generally strengthening economy – are having a positive impact on domestic consumption; we will make every effort to meet this pent-up demand in the quarters to come,” said Noyes.