Invacare: Decline is temporary 

ELYRIA, Ohio – Invacare reported net sales decreased 10.2% to $196.2 million in the first quarter of 2021 compared to the same period in 2020. 

The company says revenue growth in respiratory products was more than offset by lower sales of mobility and seating and lifestyle products, which continue to be impacted by the COVID-19 pandemic, as well as supply chain disruptions that hampered its order fulfillment during the quarter.  

"We entered 2021 with strong demand for lifestyle and respiratory products and strengthening demand for mobility and seating products,” said Matt Monaghan, chairman, president and CEO. “We see these trends continuing into the second quarter. Despite good demand, our first quarter revenues were lower by approximately $15 million of firm orders which didn't ship and become revenue in the quarter as a result of various supply chain disruptions, which impacted all regions. Component delays and parts shortages prevented the timely delivery of confirmed orders and led to a higher than typical backlog, with the additional backlog expected to convert to net sales within the next two quarters. As our team continues to rise to the challenge of supporting our customers globally, we will mitigate further disruptions by investing in additional inventory in the short-term.” 

Invacare reported gross profit as a percent of net sales was 27.8%, a decrease of 100 basis points. It reported SG&A expense improved by $2.9 million, or 4.7%, and constant currency SG&A improved by $5.1 million, or 8.4%. The company reported an operating loss of $5.7 million, a decline of $15.2 million. 

Looking forward, Monaghan is encouraged by Invacare’s healthy order book, high backlog and the continued strong demand for its products, a signal, he says, that the revenue decline in the first quarter was temporary. 

“Based on revenues to date through April 2021 and projecting those trends for the full quarter, we anticipate constant currency net sales growth in the mid-single digit range for 2Q21 compared to the prior year,” he said.