Allen Danzey

“The lower sales volume in the first part of the third quarter resulted in gross margins that were less favorable than what we had seen in the first two quarters of this year.”

“Our net sales in the second quarter were down 4.7% from the prior year and are down 3.8% on a year-to-date basis.”

“As mentioned, our net sales in the first quarter of 2024 decreased by 2.7% compared to the same period last year. The main reason for this decline was the positive effect of higher interest rates and inflation concerns, which affected consumer confidence, particularly in home and remodeling activities.”

“In the fourth quarter of 2023, net sales were $66.7 million compared to $70.5 million in 2022. And as Dan pointed out, the fourth quarter of 2022 included 14 weeks compared to the fourth quarter of 2023 at 13 weeks.”

“To reinforce what Dan said about our sales, in the third quarter we did see the 4% decline in sales down to $68.6 million from the prior year quarter at $71.8 million.”