Quincaillerie Richelieu has seen its sales and profitability decline at a time when households have less appetite for renovation projects.
The manufacturer and distributor of specialized hardware revealed on Thursday a 35.7% decline in its net profit to 29.4 million for the fourth quarter ended November 30.
Diluted earnings per share reached 51 cents, compared to 80 cents in the same period last year.
Sales, for their part, declined by 0.8% to 453.6 million. Excluding acquisitions, the company’s comparable sales fell 2.2%.
Quincaillerie Richelieu points out that sales compare to a period of strong growth last year, when demand for renovation was vigorous.
The gross margin also decreased, from 16.8% to 13%. The company attributes the decline to an increase in operating expenses toward their pre-pandemic threshold and charges related to expansion projects.
Before the publication of the results, analysts expected earnings per share of 53 cents and sales of 444 million, according to a review by the firm Refinitiv.
Richelieu made six acquisitions during the 2023 financial year. Two others were made after November 30.
Richelieu’s shares lost $1.84, or 3.89%, to $45.49 on the Toronto Stock Exchange in the afternoon.