Summer Infant Reports Third Quarter Results

WOONSOCKET, R.I., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Summer Infant, Inc. ("Summer Infant" or the "Company") (NASDAQ:SUMR), a global leader in premium infant and juvenile products, today announced financial results for the fiscal third quarter ended October 1, 2016. 

"Summer Infant's third quarter played out largely as expected, with strong underlying operating performance - including earnings of $0.01 per share - even as revenue was flat year-over-year," said Mark Messner, President and CEO. "Our gross margins remain on track, G&A expenses fell 25% versus 2015, and sound working capital management left our inventory at the lowest level in recent memory - down 26% from this time last year. Our balance sheet is in the best shape we've seen in many quarters, and the Company is well positioned for improved bottom line results going forward. "At the same time, we are focusing on initiatives to better utilize our intellectual property to drive further brand recognition and channel development. As part of this effort, certain core products, including RF monitors, are being overhauled to increase consumer acceptance at a variety of price points, while we also work to strengthen the Company's bond with retailers through tailored promotional strategies and less reliance on third-party wholesalers. The steps we are taking today, we believe, will set the stage for higher growth, margin expansion, and increased brand loyalty in 2017 and beyond."

Third Quarter Results

Net sales for the three months ended October 1, 2016 were $48.6 million compared with $50.2 million for the three months ended October 3, 2015. Excluding $1.7 million of sales related to the Company's bank-approved inventory reduction plan and furniture exit in 2015, revenue was relatively flat year-over-year. The three months ended October 1, 2016 also included $0.5 million of unfavorable foreign exchange on a constant currency basis, primarily due to the decline in the value of the British pound.

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