WOONSOCKET, R.I., Jan. 21, 2020 (GLOBE NEWSWIRE) — SUMR Brands (“SUMR Brands” or the “Company”) (NASDAQ: SUMR), a global leader in premium infant and juvenile products, today announced that the Company continues to mark progress as it works towards improving long-term financial results, as indicated by the following:
- Has enacted further cost-cutting and streamlining initiatives throughout the organization to achieve sharper brand positioning and product focus, higher margins, and increased cash flow;
- Was provided confirmation in the fourth quarter that the Company has been granted tariff exclusions for a key product line, resulting in refunds to be received on certain previously-paid tariffs;
- Anticipates an improved tariff outlook based on recent U.S.-China trade agreements;
- Has been given ongoing support from its banking group with emphasis on restructuring of the Company; and
- Continues to strategically analyze SUMR’s operations to unlock shareholder value.
“Having now been at SUMR Brands just over a month, I am pleased to say that the Company is moving forward on a number of fronts to address our growth outlook, margins, and cash flow,” said Stuart Noyes, Interim CEO. “While we recently announced preparations for a pending reverse stock split – to address the possibility of a NASDAQ delisting – the Company itself remains dedicated to cutting costs, improving product differentiation, and looking to unlock value for our shareholders through various strategic initiatives. In addition, we are encouraged by the stable tariff outlook and the recent tariff exemption for one of our important product categories – both positive developments.”
About SUMR Brands, Inc.
Based in Woonsocket, Rhode Island, the Company is a global leader of premium juvenile brands driven by a commitment to people, products, and purpose. The Company is made up of a diverse group of experts with a passion to make family life better by selling proprietary, innovative products across several core categories. For more information about the Company, please visit www.sumrbrands.com.
Certain statements in this release that are not historical fact may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbor created thereby. These statements are accompanied by words such as “anticipate,” “expect,” “project,” “will,” “believes,” “estimate” and similar expressions, and include statements regarding the expected impact of continued cost cutting and streamlining actions by the Company, including better brand positioning and product focus, higher margins, and improved cash flow. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the impact of recently imposed tariffs or new tariffs on the cost and pricing of the Company’s products; the Company’s ability to meet its liquidity requirements; the concentration of the Company’s business with retail customers; the ability of the Company to compete in its industry; the Company’s ability to continue to control costs and expenses; the Company’s dependence on key personnel; the Company’s reliance on foreign suppliers; the Company’s ability to develop, market and launch new products; the Company’s ability to manage inventory levels and meet customer demand; the Company’s ability to grow sales with existing and new customers and in new channels; the Company’s ability to maintain availability under its loan agreements; and other risks as detailed in the Company’s most recent Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release.
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