BOCA RATON, FLORIDA — October 15, 2026 — Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today reported financial results for the first six months and second quarter of fiscal year 2027, which ended on August 31, 2026.
Net sales for the six months ended August 31, 2026 were $122.0 million, up $2.8 million or 2.4% from $119.2 million reported in the same period of fiscal 2026. Net sales for the second quarter ended August 31, 2026 were $61.1 million, up $3.4 million or 5.9% from $57.7 million reported in the second quarter of fiscal 2026. Sales growth was driven by continued expansion in the professional distribution channel, particularly in adhesive products, and successful retail initiatives, despite a challenging macroeconomic environment.
Len Gould, President & Chief Executive Officer, commented, "Our fiscal 2027 results highlight the resonance of our Brands with the Professional Installer, and the resilience of our core business in the face of a challenging macroeconomic landscape. Our continuing investment in U.S.-based manufacturing, together with our laser focus on innovation and service, is supporting improved sales momentum. Notwithstanding the current economic headwinds, we continue to push forward with multiple initiatives to expand our market penetration and strengthen our product portfolio.”
Mr. Gould added, “Our financial strength provides a solid foundation during uncertain times and allows us to return capital to stockholders through regular quarterly cash dividends and stock repurchases of $9.2 million during the first six months of fiscal 2027. Lastly, I would like to thank QEP’s Associates for their hard work and incredible commitment to our customers.”
Gross profit for the first six months of fiscal 2027 was $42.7 million compared to $43.3 million in the corresponding fiscal 2026 period, down $0.6 million or 1.4%. Gross profit for the second quarter of fiscal 2027 was $20.9 million compared to $20.6 million for the second quarter of fiscal 2026, up $0.3 million or 1.5%. As a percentage of net sales, gross margin for the first six months and second quarter of fiscal 2027 was 35.0% and 34.2%, respectively, down from 36.3% and 35.7% in the same periods of the prior fiscal year. The decline in gross margins during the current fiscal year reflects the continued impact of higher tariff costs combined with more recent increases in fuel and other input costs. By comparison, the prior-year periods benefited from inventory purchased before the implementation of tariffs. Refunds of tariffs previously paid under the International Emergency Economic Powers Act (“IEEPA”) were recognized in other income within operating expenses and did not affect reported gross profit or gross margins.
Operating expenses totaled $30.0 million and $13.5 million for the first six months and second quarter of fiscal 2027, respectively, or 24.6% and 22.1% of net sales in those periods, compared to $32.9 million and $16.0 million, respectively, or 27.6% and 27.8% of net sales in the comparable fiscal 2026 periods. Other income, within operating expenses, includes $5.7 million and $4.8 million, respectively, of IEEPA tariff refunds previously paid and recognized as expense. Excluding these refunds, operating expenses increased compared with the prior-year periods, primarily due to higher shipping, general and administrative, and selling and marketing expenses.
