SPAR Group Q1 revenue falls on lower Remodel activity
Spar Group SGRP | 0.00 |
Overview
US merchandising services firm's Q1 revenue fell 10% yr/yr due to lower Remodel activity
Gross margin improved to 22.3% from 21.4% as business shifted to higher-margin merchandising
Adjusted EPS turned negative as company transitioned away from lower-margin work
Outlook
SPAR Group reiterates 2026 net sales guidance of $143 mln to $151 mln for U.S. and Canada
Company sees 2026 gross margins of 20.5% to 22.5% for U.S. and Canada
SPAR targets 25% gross margins over next 18-24 months
Result Drivers
SERVICE MIX SHIFT - Gross margin improved as company reduced lower-margin Remodel activity and grew higher-margin merchandising revenue
COST CONTROL - SG&A expenses declined on a normalized run-rate basis as part of ongoing efficiency efforts
CASH FLOW IMPACT - Operating cash flow was affected by higher accounts receivable from merchandising growth
Company press release: ID:nGNX9Q9XHt
Key Details
Metric |
Beat/Miss |
Actual |
Consensus Estimate |
Q1 Revenue |
|
$30.52 mln |
|
Q1 EPS |
|
-$0.02 |
|
Q1 Net Income |
|
-$553,000 |
|
Q1 Gross Profit |
|
$6.81 mln |
|
Q1 Operating Income |
|
-$42,000 |
|
Q1 Pretax Profit |
|
-$525,000 |
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