In Q2, WD-40 posts mixed results

San Diego-based WD-40 Company reported second-quarter net sales of $94.2 million, up 9% from the same quarter last year.

Net income, however, slipped 1% to $10.3 million. 

The company is charging ahead with plans to emphasize multi-purpose maintenance products -- such as the namesake WD-40 brand and 3-In-One brand -- while its homecare and cleaning products -- such as Carpet Fresh and Lava -- are considered "harvest brands," providing healthy profit returns but are becoming a smaller part of the business.

"We continue our focus on multi-purpose maintenance products, and we doubled the sales of the WD-40 Specialist product line in the second quarter over the previous-year fiscal quarter," said Garry Ridge, president and CEO. "We were also able to achieve nearly double-digit growth in global WD-40 multi-use product sales and plan to launch new products under our 3-In-One brand later this fiscal year.

"We continue to maintain the homecare and cleaning products, and they continue to generate positive cash flow even with the sales declines we have experienced," Ridge added.

Second-quarter multi-purpose maintenance products sales were $83.8 million, up 11% from the prior-year fiscal quarter. Americas segment sales in the second quarter were $45.2 million, up 12%. 

"We are pleased with our solid results for the quarter and remain confident that the hard work of our tribe members implementing our strategic initiatives will continue to drive strong results going forward," said Ridge. 

Advertising and sales promotion expenses were up 14% in the second quarter to $6.0 million compared with the same period last fiscal year. "We expect advertising and sales promotion expenses to remain in line with our historic averages of 6.5% to 7.5% for the year," Ridge said.

In the second quarter, additional product offerings within the WD-40 Specialist product line were released in certain markets and distribution of existing offerings was further expanded. 

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