Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 21

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 21
---
 a 40.9% decrease in sales of face masks, and a 1.3% decrease in sales of face shields.

The sales mix of the Disposable Protective Apparel segment for the six months ended June 30, 2025 was 90% for disposable protective garments, 6% for face masks and 4% for face shields. This sales mix is compared to 87% for disposable protective garments, 9% for face masks and 4% for face shields for the six months ended June 30, 2024.

Gross Profit. Gross profit decreased by $710,000, or 10.4%, to $6,131,000 for the three months ended June 30, 2025, from $6,841,000 for the three months ended June 30, 2024. The gross profit margin was 36.8% for the three months ended June 30, 2025, compared to 42.0% for the three months ended June 30, 2024.

Gross profit decreased by $736,000, or 6.0%, to $11,523,000 for the six months ended June 30, 2025, from $12,259,000 for the six months ended June 30, 2024. The gross profit margin was 37.8% for the six months ended June 30, 2025, compared to 41.2% for the six months ended June 30, 2024.

The gross profit margin in the three months and six months ended June 30, 2025 was negatively affected by a margin decrease primarily in the Disposable Protective Apparel segment. Gross profit margin in the Disposable Protective Apparel segment in 2025 was lower compared to the 2024 margin, which was higher than historical margins. In addition, gross profit margin has been negatively affected in 2025, primarily by higher sales rebates, ocean freight rates and to a lesser degree US tariffs. Management will be increasing selling prices starting in July 2025 to partially mitigate the impact of the new 2025 US tariffs, but it is expected that tariffs will have a negative effect on gross profit.

20

Alpha Pro Tech, Ltd.

Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased by $328,000, or 6.7%, to $4,556,000 for the three months ended June 30, 2025, from $4,884,000