First Aid supplier Acme United misses Q2 sales estimates due to tariff impact

Acme United

23/07/2025 11:41

Overview

Acme United Q2 sales decline 3%, missing analyst expectations, per LSEG data

Net income for Q2 rises 7%, marking most profitable quarter in history

Co attributes performance to strategic inventory management amid tariff uncertainties

Outlook

Acme United diversifying supply base amid tariff concerns

Company shifting production to optimize costs and service

Result Drivers

TARIFF IMPACT - High tariffs led to cancellation of back-to-school orders, affecting U.S. segment sales

INVENTORY MANAGEMENT - Strategic inventory management helped mitigate tariff-related disruptions, per CEO Walter C. Johnsen

SUPPLY DIVERSIFICATION - Ongoing diversification of supply base to manage costs and service amid tariff uncertainties

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$54 mln
$58.10 mln (2 Analysts)
Q2 EPS
$1.16
Q2 Net Income
$4.75 mln
Q2 Basic EPS
$1.26
Q2 Gross Profit
$22.15 mln
Q2 Operating Income
$6.39 mln
Q2 Pretax Profit
$6.09 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

Wall Street's median 12-month price target for Acme United Corp is $52.75, about 21% above its July 22 closing price of $41.65

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX7tQWYc

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)