QEP Company Inc., parent company of Harris Wood Floors and Porta-Nails Inc., reported record quarterly sales totaling $83.4 million in its first quarter of fiscal 2014 ending May 31. This is 19.4 percent above the same period of fiscal 2013. However, excluding acquisitions, net sales increased 3.3 percent due to modest sales growth, the company said.
Gross profit was 28.4 percent of net sales, down from 28.9 percent the year before. The company cited the price reductions, product mix changes and increases in raw material costs for the decrease.
"Sales continue to grow quarter over quarter reflecting the positive contribution of our recent acquisitions as well as modest growth in our core operations in spite of challenging market conditions," said Lewis Gould, chairman of the company's board of directors, in a statement. "We are continuing to target strategic acquisitions that expand our sales and earnings base. The acquisition of Homelux at the beginning of this fiscal quarter certainly contributed to that objective."
