COLMAR, PA — Dorman Products (Nasdaq: DORM) reported lower first-quarter earnings as tariff-related costs compressed margins, offsetting gains in sales across its automotive aftermarket business.
Net sales for the quarter ended March 28 rose 4.2% to $528.8 million from $507.7 million a year earlier, while diluted earnings per share fell 24% to $1.43 from $1.87.
Adjusted diluted earnings per share declined 22% to $1.57.
Gross profit margin narrowed to 36.0% from 40.9% a year earlier as higher tariff costs weighed on profitability. Selling, general and administrative expenses increased to $131.4 million from $127.6 million, though SG&A expenses as a percentage of sales improved slightly to 24.8%.
Chief Executive Officer Kevin Olsen attributed the earnings decline primarily to tariffs implemented in 2025.
“Diluted EPS was $1.43, and adjusted diluted EPS was $1.57, down 24% and 22%, respectively, compared to the same period in 2025, driven largely by the anticipated impact of higher costs associated with tariffs implemented in 2025,” Olsen said.
The company generated $43.8 million in cash from operating activities during the quarter and repurchased $51 million of shares at an average price of about $118 per share.
Dorman reaffirmed its full-year 2026 sales and earnings guidance, including the expected impact of tariffs enacted through May 4.
The company said its outlook excludes potential refunds tied to tariffs imposed under the International Emergency Economic Powers Act, additional tariff changes after May 4, future acquisitions or divestitures, and further share repurchases.
“We remain confident in our strategy and position as the innovation leader in the aftermarket,” Olsen said.
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