Flat Q2 sales for WD-40
Disruptions cause WD-40 Multi-Use product U.S. sales to fall 6%.
WD-40 reported second quarter net sales of $101.33 million, flat compared to second quarter 2018 net sales of $101.25 million.
Sales for the first six months of 2019 increased 2% to $202.6 million.
Net income for the second quarter was $15.9 million, up 7% compared to the prior year fiscal quarter. Year-to-date net income was $29.2 million, a 6% increase.
Sales in the Americas decreased 2% in the second quarter primarily due to lower sales of maintenance products. This sales decline was largely due to lower sales of WD-40 Multi-Use Product in the United States, which declined 6% percent compared to the prior year quarter.
WD-40 said the decline was driven by “the normal rotation that occurs in the warehouse club channel and some delayed promotions with a key customer.”
“We experienced two ‘events’ in the United States this quarter that resulted in a 6% decline in sales of WD-40 Multi-Use Product in the country compared to last year. This decline in sales was driven by the rotation of products that periodically occurs in the warehouse club channel as well as some delayed promotions with a key U.S. customer,” said Gary Ridge, CEO and president of WD-40.
The San Diego-based manufacturer did not reveal the specific warehouse club retailer it was referring to.
“Additionally, the delayed promotions we experienced with a key U.S. customer is directly tied to the proactive price increases we put in place last June to offset rising commodity prices. Though necessary, pricing decisions like these, can cause ‘events’ which are disruptive,” Ridge explained.
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