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

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

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