Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 19

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 of disposable protective garments and a 28.3% decrease in sales of face masks, partially offset by a 4.8% increase in sales of face shields.

The sales mix of the Disposable Protective Apparel segment for the three months ended June 30, 2025, was approximately 90% for disposable protective garments, 6% for face masks and 4% for face shields. This sales mix is compared to approximately 90% for disposable protective garments, 7% for face masks and 3% for face shields for the three months ended June 30, 2024.

Sales of disposable protective garments in the three months ended June 30, 2025 were down 11.3%, however, this is a challenging comparison as sales during the three months ended June 30, 2024 were the highest since the COVID-19 sales bump. The second quarter of 2025 started strong but experienced a decline part way through the quarter, resulting in lower-than-expected performance in the second quarter of 2025. Tariffs have added uncertainty and volatility to the marketplace, as we are seeing end-customers reducing and conserving their inventories in an effort to reduce overall spend.

Sales of face masks in the second quarter of 2025 continued to fall below management’s expectations, while we have seen a positive trend with sales of face shields. Face mask sales continue to be negatively affected by excessive purchases by one of our channel partners in the latter part of 2024. Demand from this channel partner started to improve at the end of the second quarter, which will potentially continue through the rest of 2025.

Our distribution partnerships across multiple distribution channels are strong, with mutual desire to achieve organic growth in 2025 while navigating increased costs due to tariffs. Our efforts to discover and partner with new channels in this segment have been productive, and we are pleased to bring on a few select, strategic regional players this past quarter.

19

Alpha Pro Tech, Ltd.

Consolidated sales for the six months ended June 30, 2025increased to $30,494,000 from $29,772,000 for the six months ended June 30, 2024, representing an increase of $722,000, or 2.4%. This increase consisted of increased sales in the Building Supply segment of $1,275,000, partially offset by decreased sales in the Disposable Protective Apparel segment of $553,000.

Building Supply segment sales for the six months ended June 30,