ACU

Image source: The Motley Fool. Thursday, July 23, 2026 at 12:00 p.m. ET Chairman and CEO - Walter C. Johnsen Chief Financial Officer - Paul G. Driscoll Operator: Good day, and welcome to the ACMA United Second Quarter 26 Financial Results Conference Call. At this time, I would like to turn the call over to your host, Walter C. Johnsen, Chairman and CEO. Please go ahead, sir. Walter C. Johnsen: Good morning. Welcome to the Second Quarter 2026 Earnings Conference Call for Acme United Corporation. I am Walter C. Johnsen, Chairman and CEO With me is Paul G. Driscoll, our Chief Financial Officer, who will first read a safe harbor statement. Paul? Paul G. Driscoll: Forward looking statements in this conference call, including without limitation statements related to the company's plans, strategies, objectives, expectations, intentions and adequacy of capital and other resources are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 2000. Investors are cautioned that such forward looking statements involve risks and uncertainties, including, among others, those arising as a result of a challenging global macroeconomic environment characterized by continued high inflation, high interest rates, and the imposition of new tariffs or changes in existing tariff rates. In addition, we have experienced supply chain disruptions, and we may experience these disruptions in the future. We are also subject to additional risks and uncertainties as described in our periodic filings with the Securities and Exchange Commission. And in our current earnings release. Walter C. Johnsen: Thank you, Paul. Acme United made progress during the second quarter of 2026. Our net sales increased from $54 million to $63 million, an increase of 16%. Net income increased from $4.8 million to $5.1 million and earnings per share increased 5% to $1.22. As you may remember, we acquired MyMedic in January 2026. This addition to the Acme United family sells high quality first aid kits designed to save lives. It extends the reach of our product line from simple retail kits to advanced ones, with chest seals, tourniquets, and tools to clear airways. MyMedic today sells mostly directly to consumers and is seasonal. It has high gross margins, and also high advertising and marketing costs. Net sales in 2025 were $19 million MyMedic sales in the second quarter were approximately $4.3 million with breakeven operations. As expected. We are working to increase the core direct to consumer business as well as expand the product offering to retail. At the same time, we were addressing the product cost to our strong sourcing team. Consolidating freight with other Acme United shipments to reduce costs. And eliminating duplicate corporate functions. The intention is to have strong profits from MyMedic during all quarters with particular strength in the fourth quarter. This will take time, but we are realizing savings already. Our core businesses performed well in the second quarter. In the United States, net sales of first aid and medical products increased 10%, with growth in particular at mass market retailers. Other strong contributors in the quarter were the safety made promotional first aid business, MedNap antiseptic wipes, and Spill Magic Cleanup Products. Also in the United States, the Westcott cutting tools business increased 8% during the second quarter. As you may remember, our retail business last year was hurt by tariffs and cost uncertainty. And many of our customers canceled their seasonal promotions. This has recovered. And we are seeing a resumption of growth. Our Canadian business increased 3% driven by industrial retail and online sales of our First Aid business. In Europe, net sales increased 19% with strong growth of our Westcott cutting tools. Gross margins in the quarter increased for the overall business from 41% to 42.6% due to high margins at MyMedic. Without MyMedic, gross margins in the United States declined approximately 100 basis points due to the cost of high tariffs that were capitalized in our inventory and are now being sold. This is an improvement from the first quarter and we anticipate continued gross margin expansion as these products are sold in the coming quarters. When the war with Iran began, we placed orders for approximately $10 million of extra inventory to buffer potential product shortages and cost increases. We continue to maintain this extra level of stock and are positioned to address issues should they arise. As we look to the coming quarters, we see continued growth of the First Aid and Medical business, resumption of promotional retail activity with our Westcott cutting tools, improving profitability at MyMedic, and strengthening of our gross margins as high tariff products are replaced by lower cost ones. I will now turn the call to Paul. Paul G. Driscoll: Acme's net sales for the second quarter were $62.7 million compared to $54 million in 2025, an increase of 16%. Excluding MyMedics, sales increased 8%. Sales for the 6 months ended 06/30/2026, were $115 million compared to $100 million in the same period in 2025, an increase of 15%. Excluding MyMedic, sales increased 7%. Net sales in the U.S. segment increased 17% in the quarter Excluding MyMedic, sales increased 8%. Sales increased 15% for the 6 months ended June 30. Excluding MyMedix, sales increased 6%. The increases for both periods was driven by higher sales across all product lines. Net sales in Europe for both the second quarter and 6 months of 2026 increased 19% in local currency compared to 2025 partly due to the new line of cutting and sharpening tools. The base business also had a good performance with a sales increase of 12%. Net sales in local currency for Canada increased 3% in the quarter and 6% for the year to date, mainly due to higher sales of First Aid products. The gross margin was 42.6% in the second quarter of 26 compared to 41%. in 2025. Gross margin was 41.3% for the first 6 months of 26 compared to 40.1%. in 2025. The gross margin as a percentage of sales increase for both periods was mostly due to the favorable mix from higher margin direct to consumer mimetic products. SG&A expenses for the second quarter of 26 were $19.9 million or 32% of sales compared with $15.8 million or 29% of sales for the same period of 2025. SG&A expenses for the first 6 months of 26 were $38.9 million or 34% of sales compared with $31.3 million or 31%. of sales in 2025. The higher SG&A was primarily due to the addition of the MyMedic business. The higher percentage of sales was due to the higher amount of advertising needed for the direct to consumer MyMedic business. Net income for the second quarter of 26 was $5.1 million or $1.22 per diluted share compared to a net income of $4.8 million or $1.16 per diluted share for the same period of 2025, an increase of 6% in net income and 5% in earnings per share. Net income for the first 6 months ended June 30, 2026, was $6 million or $1.46 per diluted share compared to $6.4 million or $1.57 per diluted share in the comparable period last year. This represents decreases of 6% and 7%, respectively. The decline in year to date net income was mostly due to the impact of higher tariffs in the first quarter. The higher tariff spending commenced in June 2025 However, the costs were capitalized into inventory and we started to realize the full impact to earnings as the high cost products were sold in the first quarter of 26. The impact was lower in the second quarter and we expect the impact to lessen over the next 2 quarters as the tariff rate declined in November 2025 and again in February 2026. Now to the balance sheet. Net debt increased from $22.8 million at 06/30/2025 to $27.3 million at 06/30/2026. During the 12 month period ended 06/30/2026, we paid $14 million for the acquisition of the assets of MyMedic, distributed approximately $2.4 million in dividends and purchased the cutting and sharpening line of products in Germany for $1.6 million. Additionally, we generated approximately $15 million in free cash flow. Walter C. Johnsen: Thank you, Paul. I will now open the call to questions. Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. 1 moment, while we poll for questions. Our first question comes from Timothy Call with Capital Management Corporation. Your line is live. Timothy Call: Congratulations on another strong quarter. Walter C. Johnsen: Thanks, Timothy. Timothy Call: he is built a long term track record of sales and earnings growth in the current trajectory looks great. You have many other promising growth initiatives other than what you mentioned today, such as Spill Magic capacity expansion and increased throughput at MedNap And long term plant certification to expand sales to large new customers like government and hospital systems. Do you-- well, thank you. Are those long-term initiatives? Walter C. Johnsen: Yes. Those are long-term initiatives. As people may remember, we bought a plant about a year ago in Tennessee for $6 million. It was a 12 acre site and 78 thousand square feet, Just for Spill Magic growth. And we were constrained in the site that we were in, which we were leasing. We have moved into that facility, and Paul, what are year to date sales growth at Spill Magic? Paul G. Driscoll: it is like 40%, 35%? Walter C. Johnsen: Actually, like, 30%. Paul G. Driscoll: Right? Yes. Walter C. Johnsen: So it is just-- it is really screaming. And the best part of that is we are putting in automation into that facility that is unlike any of its competitors. And because it is a permanent facility, we can do the proper installation for a long term growth plan. So there is 1 example. Another which is possible is the MedNap business in Florida which makes alcohol prep pads and BZK wipes. And we have been investing a great deal in that facility. And working to upgrade our regulatory compliance to possibly be able to address the U.S. hospital market. I would say that is at this stage, a challenge, but the certification work is progressing well, and we should be done with it by year end. And the MyMedic business in general has grown about 1/3 this year. So that is very exciting. We have also been working for a long time on generation after generation of our smart compliance software which does automatic replenishment. in our first aid kits. Our industrial first aid kits And that next generation, which automatically scans the contents of a first aid box And then generates replenishment orders through the Internet. is now in final stages and is about to be going out to early distributors. So it could be a big growth segment. We will see. Of course, we are looking at acquisitions. And we have got work to be doing at MyMedic, a lot of work. And the operating leverage that we hope should start to become apparent in the fourth quarter and then into the first of the big areas is retail distribution, which MyMedic really did not have, and we are very strong in that. We are making presentations now to large mass market retailers and industrial distributors. I think that is quite promising. So we will see how that works in the coming quarters. But we are excited about the place we are at now and we are expecting some pretty good performance going forward. So thank you too. Timothy Call: Sure. Healthcare tends to grow a little bit faster than cutting tools. Do you have an idea of what percentage of the base health care is now or should be at year end? Walter C. Johnsen: it is about health care is about 70% of the revenues right now. I have to tell you the Westcott business is coming back solidly Really, last year was hard because the promotions were all canceled due to uncertainty from tariffs and pricing. And, you know, retailers just could not bring in new items when they did not know the cost of the existing ones. But this year is very different. And we have got a full book of promotional activity for back-to-school and then into the fourth quarter. First quarter. So, Westcott has legs again, and we are really pleased with that. Congratulations. Thank you. Operator: Our next question comes from Georgy Vashchenko with Freedom Capital Markets. Your line is live. Georgy Vashchenko: Thank you. Walter, Paul, good afternoon, congratulations on an excellent quarter. The results were very impressive. So I have 2 questions. On gross margin. The first, gross margin reached a record level this quarter Could you help us understand the key drivers behind the improvement? Specifically, how much of this expansion was attributable to the MyMedic acquisition? And my second question is on tariffs. You mentioned that tariffs created some headwinds on margins. During the quarter. Should we expect the additional gross margin expansion as those headwinds decrease? Thank you. Walter C. Johnsen: Sure. Well, thank you very much. Actually, both questions are quite intertwined. And what you are referring to is our gross margin improvement, and part of that has come of course, because MyMedic's bigger gross margins than, our regular business. But they spend it on and it shows up in SG&A. They spend it in, advertising. And so when you dig underneath, as I pointed out in my portion of this call, in The United States, margins this quarter were reduced by about 100-basis-points due to tariffs. And, Paul, what was the number in the first quarter? Paul G. Driscoll: About 2%? Is that ballpark? it is probably like 150 basis points. Most of the increase in margin gross margin as a percentage of sales is due to the mix of MyMedix. Yes by far, it is. Walter C. Johnsen: And as we are looking forward, the impact of tariffs because they have been reduced, and that inventory is being, sold, we are getting expansion. And so if we reduced our normal gross margin by 1%, you can picture that as we go through the rest of the year, we will recover that 1%. And relative to you know, other costs, there are certainly other costs. Freight has increased. And you can imagine with both bunker fuel for bringing product across the ocean as well as online freight delivery here in the United States and in Europe. The cost of fuel to run the trucks is up. So there are other costs, and the dollar has weakened against the Chinese currency in the past year. And so for the items that we import from China, that is a headwind. But the net of it all is we have got that pretty much, thought through. Both in the pricing of our products And as we pointed out, there is about $10 million of inventory that is either here or is on the way. that is been purchased shortly, within days, of the start of the Iran war. So it is got locked in excellent pricing. Thank you. Georgy Vashchenko: This is very helpful. Walter C. Johnsen: Thank you. Operator: Our next question is from Jim Marrone with Singular Research. Your line is now live. Jim Marrone: Yes. Good afternoon, gentlemen. Good quarter as I would like to say good quarter as well, Given the backdrop of a tougher environment. And with regards to a tougher environment, I am trying to get a sense. Are you hearing anything about the consumer appetite Maybe with regards to the MyMedic, you know, is the consumer appetite still going to be just as strong as it was in the past quarters? Or are you going to start to find that the consumers either on the industrial or on the retail end a little bit more discerning. We are hearing from even the grocers that the basket is getting smaller. I guess, as a result of rising fuel costs and other inflationary items. That consumers are a little more discretionary in their spending. And so you know, how does that relate to both MyMedic? Are they looking-- Jim, Walter C. Johnsen: Jim, that is a very good question. Consumers only have a certain amount to spend. And maybe they get a wage increase each year, but after taxes, that is a small amount. And clearly, for example, in the Northeast where you have to heat your homes, that is an increase in the fuel cost expensive. And, of course, for cars, it is expensive. And there have been price increases So you would think that, the consumer would be more cautious. With regard to MyMedic, so far, those sales are right on plan. And we are not seeing weakness. And as demonstrated by the growth of both West and our first aid business, our customer base is buying. So in the overall, have to be aware that the individual consumer is being pressed, but we are not seeing it yet. And I think we would have seen some, especially for example, in Europe. Europe just had a record quarter. Both in sales and in earnings. And the Europeans are facing every bit of the inflation that the U.S. is, plus their cost of oil has gone even higher, and our business is robust there. Jim Marrone: Right. And so are they looking at that as more as an essential item rather than a discretionary item, or do you have a competitive advantage over your competitors that they are choosing your product over the others? Like, what is the driver behind that? Walter C. Johnsen: Oh, yeah. Well, there are clear drivers why people buy our products. First, in the Westcott area, we were the pioneer in coatings that titanium coatings, nonstick coatings, that deliver honestly, the best performance in the class and they have for many years, and it is all utility patents. So when you buy a Westcott item, you are getting and it is a titanium item, for example. it is the best there is. And because we are the largest in the world, yeah, we have world class pricing. And so then you have got innovation in the Westcott area, and you have got cost. In first aid, we have got a strong marketing team building around addressing injuries and saving lives. And that marketing team is coming out with products that frankly totally differentiate from the competitors many of whom are selling things in old white boxes or in metal cases. We have also got a strong sourcing team for components in Asia. And it is multi office, multi country. Our competitors do not have that. And that is why we win at places like Walmart and at Granger and at Fastenal, So there we have also got, I think, probably the lowest costs in the world. Jim Marrone: Right. Okay and thank you. I appreciate that answer. And you also touched upon it, and I am going to bring it up again just with regards to the cutting tools. it is, you know, the retailers have already come out with back to school. there is already been headlines with regards to parents being a little bit more discretionary on back to school budgets. Are you getting any are you hearing anything with regards to that end as far as back to school sales? Walter C. Johnsen: Well, we just through June where, you know, by the time June happens, the second quarter, we have shipped a chunk of the, back-to-school because the retailers have been taking delivery setting it into the, planograms, or they are putting them up online. Through June, it is a record for us. Just flat out record. And we have got a good backlog in the third quarter, which would be the rest of back to school. So for us, I am not seeing that. But yes. Again, perhaps they are trading down on some of the items within the basket of what they buy, to buy less expensive items. I know that, for example, our dollar store sales have been doing very, very well. But, you know, we are also very strong in Walmart, and that is doing well. Again, that is delivering value. We seem to be running a little bit counter to what you would think. Yes. Jim Marrone: I appreciate that, Walter. Thank you for that visibility. And just 1 last question. With regards to the Canada segment, that just seems to be the 1 that is really struggling the most. With just the 1% increase in revenue and, you know, single digits with regards to the to the bottom line. So is that a result just of a struggling Canadian economy or is it tariff related? And what do you see going forward with this renegotiation of NAFTA? Like, what is the driver behind the Canadian segment? Is it the economy? Is it tariffs? what is going on with that 1? Walter C. Johnsen: Well, there is 2 parts. there is the First Aid Central business, which is doing very, very well. that is our First Aid business. We have just moved into a, another new facility. that is the third move in 4 years because we keep growing. And, this is a fabulous new facility outside of Montreal. So the first aid side is strong. The Westcott side is weaker. And there it seems to be hit more by the economy and also just that it is sort of sluggish in Canada. So you know, it is growth, but it is not much. Actually, in the third quarter, they seem to have done a little bit better. But you know, it is a small part of the overall company, and we are certainly cheering for our Canadian colleagues. The impact of tariffs in Canada versus the United States probably impacts their shopping selections in total. But relative to our products, we ship in Canada with Canadian items and so there is no tariff impact. Great. Thank you for that answer, Walter. Thank you. Operator: 1 moment please while we poll for questions. Our next question comes from Richard Dearnley with Longport Partners. Your line is now live. Richard Dearnley: Thank you. Good morning. The business being a direct to consumer business. Well, I am surprised that, you know, emergency response and trauma and so on that it is for emergency responding. You know, does the local fire department order direct? Or, I am surprised it is a DTC business. Walter C. Johnsen: Well, that is where it started, and it is built a half million social media followers, which is a very big number. And we have got videos coming out at least twice a week new videos with either training or education on how to use things or new product introductions or success stories. And so you have a following of people that are using the products. You know, long term, there are parts of the country and I am not saying this is MyMedic's, but in general, where there are less hospitals, there are less clinics, there are less doctors, And this direct to consumer is a way to train and it is a way to deliver products directly to a consumer. Because maybe it is in a rural area. Right. We do sell some MyMedic items to fire departments and police departments and ambulances. But that will probably be a much bigger chunk as our Salesforce starts to do that. that is the Acme United Salesforce. Right. Richard Dearnley: They are not currently buying it. This is mostly direct to consumer today. And the exciting thing is we know we can get it placed elsewhere. Because they have done the hard work, which is just world class products. And that is the challenge. that is what we are working on. And is there seasonality strong in the fourth quarter because people have a budget and spend it or lose it? Walter C. Johnsen: No. No. These are individuals. They are doing it for gifts. You know, you have got Amazon Black Friday. You have got-- it is just-- oh. Holiday sales, you know, but it is it is hunting. it is all being rolled into that fourth quarter Right? Paul G. Driscoll: there is a bit of an-- there is a bit of a-- Dick, there is a bit of an impact of the FSA spending at the end of the year. To your point. But mostly, it is just holiday spending. Richard Dearnley: Oh, mmm-hmm. I see. Like what Walter said. And So is the seasonality such that the fourth quarter is 25%, 30% larger than the other quarters? Walter C. Johnsen: Oh, I would be-- yeah. Richard Dearnley: Alright. Paul G. Driscoll: 35. 21. it is probably like 35% of the sales are in the fourth quarter of the year. Richard Dearnley: Of the year, right. Okay. Great. Thank you. Walter C. Johnsen: Thank you, Doug. Operator: Our next question comes from Jake Patterson with Telanta Investment Group. Your line is now live. Jake Patterson: Hey, guys. Just a quick 1. I know you said Westcott was up 8% during the quarter. I was curious if you had any data that could break out pricing versus actual volume. I had an impression that you guys had think, close to a double digit price increase of, you know, like 8%, would imply units down a little bit, but just given kind of what last year looked like versus this year, it had not seemed like that would make sense. Walter C. Johnsen: So most of it was volumes. Most of it was volume. Most of it was, yes. Jake Patterson: Okay. So I mean, if you pass price last year, I guess, is that I mean, should have been flowing through your numbers. Like, first quarter being down 2%, I was kind of-- I was just curious. that is pretty much all volume in there. Walter C. Johnsen: Yes. it is volume. The price increases cannot be applied directly to each product evenly. And, for example, if in the back to school items, they may be more price sensitive, and so maybe there is not much of a price increase on those and others that are more specialty. Get bigger price increases. So what the second quarter was really huge volume. But, again, you can picture the retailers are putting new promotions in place. You know, you are moving more. And that is the really exciting thing that we did not have at all last year. Yes. Jake Patterson: No, that is definitely good to hear. Awesome. Well, yep. that is it for me. I appreciate it. Walter C. Johnsen: Thank you. Sure. Operator: We have reached the end of the question-and-answer session. I would now like to turn the call back over to management for any closing remarks. Walter C. Johnsen: Thank you. If there are no further questions, this call is complete. And I would like to thank you for joining us. Goodbye. Operator: This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Acme United (ACU) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Acme United Corporation. (ACU) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +154.17%. A quarter ago, it was expected that this company would post earnings of $0.55 per share when it actually produced earnings of $0.24, delivering a surprise of -56.36%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Acme United, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $62.72 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.89%. This compares to year-ago revenues of $54 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Acme United shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While Acme United has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Acme United was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.80 on $55.78 million in revenues for the coming quarter and $2.51 on $222.62 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Central Garden (CENTA), is yet to report results for the quarter ended June 2026. This pet and lawn products maker is expected to post quarterly earnings of $1.51 per share in its upcoming report, which represents a year-over-year change of -3.2%. The consensus EPS estimate for the quarter has been revised 50% lower over the last 30 days to the current level. Central Garden's revenues are expected to be $876.54 million, down 8.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acme United Corporation. (ACU) : Free Stock Analysis Report Central Garden & Pet Company (CENTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: Increased 16% to $63 million from $54 million. Net Income: Increased to $5.1 million from $4.8 million. Earnings Per Share (EPS): Increased 5% to $1.22. MyMedic Sales: Approximately $4.3 million with breakeven operations. Gross Margin: Increased to 42.6% from 41%. SG&A Expenses: $19.9 million or 32% of sales, up from $15.8 million or 29% of sales. Net Debt: Increased to $27.3 million from $22.8 million. Free Cash Flow: Generated approximately $15 million. Warning! GuruFocus has detected 7 Warning Sign with ACU. Is ACU fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Acme United Corp (ACU) reported a 16% increase in net sales, rising from $54 million to $63 million. Net income increased from $4.8 million to $5.1 million, with earnings per share up 5% to $1.22. The acquisition of MyMedic has contributed positively, with sales of approximately $4.3 million in the second quarter. Gross margins improved from 41% to 42.6%, driven by high-margin MyMedic products. Strong performance in core businesses, with a 10% increase in U.S. first aid and medical product sales and an 8% increase in Westcott Cutting Tools sales. The company faces challenges from a global macroeconomic environment, including high inflation and interest rates. Supply chain disruptions and high tariffs have impacted gross margins, particularly in the U.S., where margins declined by approximately 100 basis points. SG&A expenses increased significantly, from $15.8 million to $19.9 million, primarily due to MyMedic's high advertising costs. Net debt increased from $22.8 million to $27.3 million, partly due to the acquisition of MyMedic. Year-to-date net income decreased by 6%, largely due to the impact of higher tariffs in the first quarter. Q: Can you elaborate on the long-term growth initiatives for Acme United, such as Spill Magic capacity expansion and MedNap's increased throughput? A: Walter Johnsen, CEO, explained that Acme United has invested in a new facility in Tennessee for Spill Magic, leading to a 30% sales growth. They are also upgrading MedNap's regulatory compliance to expand into the U.S. hospital market. Additionally, they are advancing their smart compliance software for first aid kits and exploring retail distribution for MyMedic products. Q: What are the key drivers behind the record gross margin improvement this quarter, and how do tariffs impact this? A: Walter Johnsen, CEO, noted that the gross margin improvement is largely due to MyMedic's higher margins, despite increased SG&A expenses for advertising. Tariffs reduced U.S. margins by about 100 basis points, but as tariff rates decline, they expect further margin expansion. Q: How is consumer demand affecting MyMedic and other product lines, given the current economic environment? A: Walter Johnsen, CEO, stated that despite economic pressures, MyMedic sales are on plan, and there is no observed weakness in consumer demand. The Westcott and first aid businesses are also performing well, indicating strong consumer interest in their products. Q: Can you explain the seasonality of MyMedic's business and its impact on sales? A: Walter Johnsen, CEO, explained that MyMedic experiences strong fourth-quarter sales due to holiday spending, Amazon promotions, and hunting season. Paul Driscoll, CFO, added that the fourth quarter accounts for about 35% of annual sales. Q: What is driving the growth in the Westcott business, and how does pricing impact this? A: Paul Driscoll, CFO, mentioned that the 8% growth in Westcott was primarily due to volume rather than pricing. Walter Johnsen, CEO, added that new promotions and product placements are contributing to the growth, despite last year's challenges with tariffs and pricing uncertainty. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net sales growth of 16% was driven by the MyMedic acquisition and a 10% increase in U.S. first aid and medical products, particularly within mass market retail channels. The Westcott cutting tools business saw an 8% increase in the U.S. as retailers resumed seasonal promotions that were previously canceled due to tariff and cost uncertainty. Gross margin expansion to 42.6% was primarily attributed to the high-margin direct-to-consumer profile of the newly acquired MyMedic business. Management is actively integrating MyMedic by consolidating freight, eliminating duplicate corporate functions, and leveraging the core sourcing team to reduce product costs. European operations achieved 19% growth, fueled by the successful introduction of new cutting and sharpening tool lines despite regional inflationary pressures. The company maintains approximately $10 million in extra inventory as a strategic buffer against potential supply chain disruptions and cost increases stemming from the war with Iran. Management expects continued gross margin expansion over the next two quarters as inventory impacted by high tariffs is sold and replaced by lower-cost products. The MyMedic business is projected to achieve strong profitability in the fourth quarter, historically its strongest period due to holiday gifting and FSA spending. Strategic expansion for MyMedic includes moving beyond its direct-to-consumer roots into Acme's established mass market retail and industrial distribution networks. The company is finalizing a next-generation 'smart compliance' software for industrial first aid kits that uses automated scanning for internet-based replenishment. Regulatory certification for the MedNap facility is expected by year-end, which would allow the company to begin addressing the U.S. hospital market. U.S. gross margins, excluding MyMedic, declined by approximately 100 basis points due to the realization of capitalized tariff costs from previous periods. Higher SG&A expenses, rising to 32% of sales, reflect the intensive advertising and marketing requirements inherent in MyMedic's direct-to-consumer model. The company faces ongoing headwinds from increased freight costs, rising fuel prices, and a weakening U.S. dollar against Chinese currency. A $14 million cash outlay for the MyMedic acquisition and a $1.6 million purchase of a German tool line contributed to a net debt increase to $27.3 million. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Spill Magic sales have grown approximately 30% year-to-date following a move to a permanent facility in Tennessee that allows for unique automation installations. MedNap is undergoing regulatory upgrades to target the U.S. hospital market, with certification work expected to conclude by the end of 2026. Management has not yet observed a slowdown in consumer appetite despite inflationary pressures on fuel and essentials. Strong performance in value-oriented channels like dollar stores and Walmart suggests consumers may be trading down within categories rather than exiting them. Approximately 35% of MyMedic's annual sales occur in the fourth quarter, driven by holiday gifting and year-end FSA budget utilization. Acme intends to utilize its existing sales force to transition MyMedic from a primarily DTC business to one serving fire departments, police, and industrial distributors. The 8% growth in Westcott was primarily driven by volume rather than price increases, as retailers re-engaged with promotional planograms. Management noted that price increases are applied selectively to specialty items rather than price-sensitive back-to-school products.

SHELTON, Conn., July 23, 2026 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended June 30, 2026 were $62.7 million compared to $54.0 million for the quarter ended June 30, 2025, an increase of 16%. Excluding sales resulting from the acquisition of the assets of My Medic on January 15, 2026, comparable three-month sales increased 8%. Net sales for the six months ended June 30, 2026 were $115.0 million, compared to $100.0 million in the same period in 2025, an increase of 15%. Excluding My Medic sales, comparable six-month sales increased 7%. Net income was $5.1 million, or $1.22 per diluted share, for the quarter ended June 30, 2026, compared to $4.8 million, or $1.16 per diluted share, for the same period last year, an increase of 6% in net income and 5% in diluted earnings per share. Net income for the six months ended June 30, 2026 was $6.0 million, or $1.46 per diluted share, compared to $6.4 million, or $1.57 per diluted share, for the same period in 2025, a decrease of 6% in net income and 7% in diluted earnings per share, caused primarily by our first quarter results. The My Medic business acquired in January, which sells tactical, trauma and emergency response products directly to consumers, contributed to sales growth but due to the seasonal nature of the My Medic business there was minimal impact on earnings in the second quarter and the first half of 2026. As a direct-to-consumer seasonal business, My Medic has historically generated the majority of its profitability in the fourth quarter and we expect this pattern to continue. Chairman and CEO, Walter C. Johnsen said, “In the second quarter we had record revenues and income from operations as we drove growth across all geographies and product lines. In the U.S. net sales of our first aid business without My Medic’s contribution increased 10% in the quarter. Net sales of Westcott cutting tools grew 8% in the second quarter, an important improvement over last year due to a return of promotional activity and stronger retail demand.” Mr. Johnsen continued, “As we anticipated, gross margins in the U.S. business were affected by products purchased at elevated tariff levels, though the impact was less than in the first quarter. We expect prior high tariffs to continue pressuring margins in the coming quarters, but at a decreasing rate.” Mr. Johnsen concluded, “The My Medic acquisition is progressing well. We are aggressively presenting its products to new potential industrial and retail customers, as well as leveraging our sourcing team and scale to improve product costs. We have also reduced overhead. These actions, taken together, are designed to deliver strengthening quarterly profitability by driving growth on a lower cost base. It will take time, but we are making progress.” For the second quarter of 2026, net sales in the U.S. segment increased 17% compared to the same period in 2025. For the six months ended June 30, 2026, net sales in the U.S. segment increased 15% compared to the same period in 2025. The sales increases for the three and six months were due to strong sales across all product lines and contribution from the acquisition of the My Medic business. European net sales for the second quarter of 2026 increased 24% in U.S. dollars and 19% in local currency compared to the second quarter of 2025. Net sales for the six months ended June 30, 2026 increased 28% in U.S. dollars and 19% in local currency compared to the same period of 2025. The sales increases for the three and six months were due primarily to higher ecommerce sales and contribution from the line of cutting and sharpening products acquired in Germany on October 1, 2025. Net sales in Canada for the second quarter of 2026 increased 1% in U.S. dollars and 3% in local currency compared to the same period in 2025. Net sales for the six months ended June 30, 2026 increased 7% in U.S. dollars and 6% in local currency compared to the same period of 2025. The sales increases for the three and six months were due to higher sales of first aid products. Gross margin was 42.6% in the second quarter of 2026 versus 41.0% in the comparable period last year. Gross margin was 41.3% for the six-month period ended June 30, 2026, compared to 40.1% for the same period in 2025. The increases for the three and six months were primarily due to the inclusion of the new My Medic direct to consumer business. The Company’s bank debt less cash as of June 30, 2026 was $27.3 million compared to $22.8 million as of June 30, 2025. During the twelve-month period ended June 30, 2026, the Company paid approximately $14.5 million for the acquisition of the assets of My Medic ($18.6 million purchase price less $4.1 million of holdbacks), distributed approximately $2.4 million in dividends on its common stock and purchased the cutting and sharpening line of products in Germany for approximately $1.6 million. During the same period, the Company generated approximately $15.5 million in free cash flow. On July 15, 2026, the Company entered into a new $65 million syndicated credit facility with HSBC Bank USA, N.A and City National Bank, a U.S. subsidiary of Royal Bank of Canada. The new facility, which replaces the Company’s prior $65 million credit facility with HSBC, expires on July 15, 2029. Conference Call and Webcast InformationAcme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, July 23, 2026, at 12:00 p.m. ET. To listen or participate in a question-and-answer session, dial 877-407-0784. International callers may dial 201-689-8560. The confirmation code is 13761594. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives. About Acme UnitedACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap®, Elite First Aid® and My Medic®. For more information, visit www.acmeunited.com. Forward Looking Statements The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “expect,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations. Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that may impact the Company’s business, operations and financial results. These risks and uncertainties  include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of volatility in global economic conditions,  including the impact on the Company’s suppliers and customers; (iii) international trade policies of the United States or foreign governments and their impact on demand for our products and our competitive position, including the imposition of new tariffs, changes in existing tariff rates or the threat of any such action; (iv) the continuing adverse impact of inflation, including product costs, and interest rates; (v) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (vi) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, strikes, port closures or otherwise; (vii) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (viii) currency fluctuations; (ix) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (x) changes in client needs and consumer spending habits; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; and (xiii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

This article first appeared on GuruFocus. Net Sales: $52.3 million, a 14% increase from the previous year. Net Income: $985,000, down from $1.6 million last year. Earnings Per Share (EPS): $0.24, compared to $0.41 last year. Gross Margin: 39.7%, up from 39% last year. SG&A Expenses: $19 million, 36% of net sales, up from $15.5 million or 34% of net sales last year. Free Cash Flow: Approximately $14.2 million before the purchase of a new facility. European Sales Increase: 19% in local currency. Canadian Sales Increase: 11% in local currency. Inventory Increase: Approximately $10 million of incremental inventory purchased. Warning! GuruFocus has detected 4 Warning Sign with ACU. Is ACU fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net sales increased by 14% to $52.3 million in the first quarter of 2026. The acquisition of MyMedic contributed approximately 8% to the sales increase and is expected to generate significant profits in the future. Gross margins improved to 39.7% from 39% in the previous year. Sales in Europe increased by 19% in local currency, driven by the acquisition of Schmid glut and strong performance in the first aid business. The Canadian business saw a 16% increase in sales, with strong performance in both the first aid and cutting segments. Net income decreased to $985,000 from $1.6 million in the previous year, with earnings per share dropping from $0.41 to $0.24. Core gross margins declined due to higher costs and tariffs, despite the overall increase in gross margins. The company faced supply chain disruptions and increased costs due to tariffs, impacting profitability. SG&A expenses rose to $19 million, or 36% of net sales, primarily due to the addition of MyMedic and increased advertising costs. The cutting and sharpening segment experienced a decline, with Westcott down about 2% in the first quarter. Q: Could you put a dollar amount on what the quality assurance protocols are involving? A: Walter C. Johnsen, Chairman and CEO, explained that the company spent about $1.2 million last year on consulting to upgrade their facility in response to an FDA audit. This year, they have spent approximately $300,000 so far. The upgrades include a new microbiology lab and improvements to the chemical laboratory for testing. Q: Does MyMedic's direct-to-consumer (DTC) expertise translate over into your first aid or Westcott business? A: Walter C. Johnsen noted that both recent acquisitions, Schmidiglut in Germany and MyMedic, are direct-to-consumer businesses. MyMedic's social media presence, with half a million followers, provides a platform for potential customers, which could benefit other product lines like Westcott's craft items. Q: What are the revenue trends in the cutting and sharpening segment for Q1? Did they recover? A: Walter C. Johnsen stated that the cutting and sharpening segment was impacted by tariffs last year, leading to a decline. However, in Q1 2026, Westcott was down only 2%, and they expect growth in the second, third, and fourth quarters due to easier comparisons and active promotional activities. Q: What is the expected SG&A run rate for the rest of fiscal 2026? A: Paul G. Driscoll, CFO, indicated that SG&A expenses are expected to be around 33% of revenue for the full year, with some savings anticipated from the MyMedic acquisition. Q: What are the CapEx expectations for 2026? A: Paul G. Driscoll mentioned that they are looking at approximately $6 to $7 million in capital expenditures, which includes investments in automation and expansion in Canada. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net income declined 40% despite 14% revenue growth, primarily due to the timing of high-cost inventory and peak tariffs flowing through the P&L. The MyMedic acquisition contributed 8% to total revenue growth but operated at breakeven due to its seasonal profit profile and high advertising spend. Core gross margins were pressured by approximately 200 basis points as the company sold through inventory purchased during peak tariff periods. Management proactively increased inventory by approximately $10 million to hedge against potential shortages and price spikes caused by the war in Iran. The Spill Magic segment achieved record growth of over 30%, supported by the transition to a larger, more efficient facility in Tennessee. European growth of 19% was driven mainly by a new line of cutting and sharpening tools, while also benefiting from the Schmidaglet acquisition and record performance in the first aid category. The Westcott cutting business is beginning to stabilize after 2025 tariff-related promotional stalls, with easier comparisons expected in upcoming quarters. Management expects a return to normal margin levels by the third quarter as high-cost tariffed inventory is fully exhausted during Q2. The company is targeting a full-year SG&A rate of approximately 33% of revenue, assuming realization of integration synergies from MyMedic. Strategic expansion of MyMedic into the Canadian market is planned for 2026, leveraging existing manufacturing capacity and unexpected brand recognition. Capital expenditure is projected at approximately $7 million for 2026, with investments focused on automation and expansion in Canada. Guidance assumes a recovery in promotional activity for the cutting and tool segment during the second half of the year. The company incurred $300,000 in Q1 for quality assurance upgrades at the MedNap facility following an FDA audit, with total project costs reaching $1.3 million. A significant lag in realizing the benefits of lower tariff rates, which declined in November 2025 and February 2026, occurred because costs were capitalized into inventory and only hit earnings as high-cost products were sold in 2026. The MyMedic business model introduces higher seasonality, with the vast majority of profits expected to be back-weighted to the fourth quarter. Implementation of robotics and drones for cycle counting and packaging is underway to offset labor costs and improve warehouse efficiency. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management has spent approximately $1.3 million to date on consultants and lab upgrades to meet U.S. hospital market standards. The project is three-quarters complete and is viewed as a strategic investment to enable audits by major medical distributors. Incremental consulting costs related to this project are not expected to repeat in future periods. Acme is leveraging MyMedic’s social media base of 500,000 followers to learn DTC marketing techniques like video-driven sales. Management plans to apply these DTC capabilities to the Westcott craft line to demonstrate product differentiation directly to consumers. The segment was down 10% in 2025 because high tariffs prevented retailers from setting promotional pricing. Q1 showed a narrowed decline of approximately 2%, with management expecting growth in Q2-Q4 due to renewed promotional quoting. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

SHELTON, Conn., April 23, 2026 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended March 31, 2026 were $52.3 million compared to $46.0 million for the quarter ended March 31, 2025, an increase of 14%. Excluding incremental sales resulting from the acquisition of the assets of My Medic on January 15, 2026, comparable sales increased 6%. Net income was $1.0 million, or $0.24 per diluted share, for the quarter ended March 31, 2026, compared to $1.7 million, or $0.41 per diluted share, for the comparable period last year, a decrease of 40% in net income and 41% diluted earnings per share. This decrease was due to higher cost of sales and increased operating expenses primarily as a result of higher tariff-related costs and investments in enhanced quality assurance protocols at the Med-Nap facility, together with rising employee healthcare expenses. Tariff expenses were recognized during the first quarter as the company sold inventory that had been subject to higher tariff rates imposed in 2025. The recently acquired My Medic business, which sells tactical, trauma and emergency response products directly to consumers, contributed to sales growth, with minimal impact on earnings in the first quarter. As a direct-to-consumer seasonal business, My Medic is expected to generate the majority of its profitability in the fourth quarter. Chairman and CEO, Walter C. Johnsen said, “While we experienced higher costs of sales and operating expenses in the first quarter, the impact was magnified due to the seasonality of our business, which traditionally has lower sales in the first quarter. We are actively working to improve profitability. We just moved into our new Spill Magic facility in Tennessee- in the process lowering expenses and providing room to expand; consolidated one of our sites in Canada; and are continuing to install automation throughout our facilities. My Medic, which has annual sales of $19 million, offers many compelling growth and cost saving opportunities. We are expanding My Medic’s retail distribution while also leveraging Acme United’s strong purchasing network to reduce costs, cutting overhead, and consolidating functions. Importantly, the expenses incurred for the enhanced quality assurance protocols at the Med-Nap facility were one-time, non-recurring expenses.” Mr. Johnsen continued, “We have been proactively purchasing additional inventory in preparation for product shortages and cost increases resulting from the conflict in Iran. To date, we have added approximately $10 million of incremental orders for delivery in the second and third quarters and are carefully evaluating additional purchases.” Mr. Johnsen concluded, “Acme United has extensive experience with supply chain challenges, and I am confident that our team will address them successfully. I also believe the investments we have been making in expanding Acme United’s business lines, technology, and capacity will continue to strengthen our Company.” For the first quarter of 2026, net sales in the U.S. segment increased 12% compared to the same period in 2025 due to increased sales of first aid and medical products and additional sales resulting from the acquisition of My Medic. European net sales for the first quarter of 2026 increased 32% in U.S. dollars and 19% in local currency compared to the first quarter of 2025 due primarily to higher ecommerce sales and additional sales resulting from the acquisition of the line of cutting and sharpening products in Germany on October 1, 2025. Net sales in Canada for the first quarter of 2026 increased 16% in U.S. dollars and 11% in local currency compared to the same period in 2025 due to higher sales of first aid products. Gross margin was 39.7% in the first quarter of 2026 versus 39.0% in the comparable period last year. The Company’s bank debt less cash as of March 31, 2026 was $38.6 million compared to $27.2 million as of March 31, 2025. During the twelve-month period ended March 31, 2026, the Company paid approximately $14.6 million for the acquisition of the assets of My Medic ($18.7 million purchase price less $4.1 million of holdbacks), distributed approximately $2.4 million in dividends on its common stock and purchased the cutting and sharpening line of products in Germany for approximately $1.6 million. Additionally, the Company generated approximately $14.2 million in free cash flow, before the purchase for cash of a new $6.0 million manufacturing and distribution facility in Tennessee in July 2025 to expand the Company’s Spill Magic business. Conference Call and Webcast Information Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, April 23, 2026, at 12:00 p.m. ET. To listen or participate in a question-and-answer session, dial 877-407-0784. International callers may dial 201-689-8560. The confirmation code is 13759878. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives. About Acme United ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap®, Elite First Aid® and My Medic®. For more information, visit www.acmeunited.com. Forward-Looking Statements The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations. Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that may impact the Company’s business, operations and financial results. These risks and uncertainties include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of volatility in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) international trade policies of the United States or foreign governments and their impact on demand for our products and our competitive position, including the imposition of new tariffs, changes in existing tariff rates or the threat of any such action; (iv) the continuing adverse impact of inflation, including product costs, and interest rates; (v) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (vi) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, strikes, port closures or otherwise; (vii) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (viii) currency fluctuations; (ix) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (x) changes in client needs and consumer spending habits; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; and (xiii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

Acme United Corporation. (ACU) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -56.36%. A quarter ago, it was expected that this company would post earnings of $0.46 per share when it actually produced earnings of $0.46, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Acme United, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $52.3 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.85%. This compares to year-ago revenues of $45.96 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Acme United shares have added about 13% since the beginning of the year versus the S&P 500's gain of 4.3%. While Acme United has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Acme United was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $60.37 million in revenues for the coming quarter and $3.17 on $222.17 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Spectrum Brands (SPB), has yet to report results for the quarter ended March 2026. This holding company is expected to post quarterly earnings of $1.04 per share in its upcoming report, which represents a year-over-year change of +52.9%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Spectrum Brands' revenues are expected to be $672.8 million, down 0.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acme United Corporation. (ACU) : Free Stock Analysis Report Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research