Boston, MA 05/14/2014 (wallstreetpr) – The reason why Summer Infant, Inc. (NASDAQ:SUMR) is rocking today is due to its sequential revenue gain for the first quarter. The company, which is a developer and distributor of juvenile safety, health and wellness products, jumped by over 60% during the early morning trade.
Sequential Growth
During the first quarter, Summer Infant, Inc. (NASDAQ:SUMR) reported net revenues of $50.8 million as against $44.7 million in the fourth quarter. Gross profit during the reported period came in at $16.4 million, reflecting an improvement from $14.4 million in the fourth quarter of 2013 but a fall from $18.6 million record in the first quarter of 2013. The declined gross profit year-over-year was mainly due to withdrawn license agreements for Carter’s and Disney and trim down of the company’s furniture range. Moreover, the gross profit was also impacted due to a $300,000 charge associated with the battery recall during the first quarter of the year. The net income came in at $0.2 million or $0.01 per diluted share for the quarter, in compared to net loss of $1.7 million, or $0.09 in the fourth quarter of the previous year.
Strategy Working
During the reported quarter Summer Infant, Inc. (NASDAQ:SUMR)’s sales jumped 14% over the last quarter, driven by robust demand from its retail partners, and specifically in its monitor, nursery, gear and safety product ranges. The company’s chief executive officer, Carol Bramson, noted that Summer Infant has become a much more streamlined firm as compared to where it was during the beginning of 2013. While the company reported lower year-over-year revenues, it appeared to have strengthened its gross margin by 94 basis points. During the last one year, the company has also been able to bring down its selling expenses by 21%. Similarly, the adjusted EBITDA also improved on a sequential basis.
Bramson concluded that the results depict an optimistic picture about the way company is working and believes that it is returning to profitable growth.
