WD-40 sees Q3 sales slip
WD-40 Company (WDFC) announced a decrease in net sales for its third quarter of fiscal year 2022 ending May 31, 2022, indicating strong sales comparisons year-over-year as well as current global headwinds.
“In the third quarter we were up against very strong sales comparisons and had to manage through several global disruptions that negatively impacted our current quarter sales results,” said Garry Ridge, WD-40 chairman and CEO.
The San Diego, Calif.-based company reported total net sales for the third quarter were $123.7 million, a decrease of 9% compared to the prior year fiscal quarter. Year-to-date total net sales were $388.4 million, an increase of 4% compared to the prior year fiscal period.
“In addition, we are operating in a challenging macroeconomic environment which has continued to deteriorate our gross margin. Although we remain committed to managing our business to restore gross margin to our target of 55 percent over the longer-term, we continue to experience short-term margin pressures due to inflation,” said Ridge.
Net sales by segment as a percent of total net sales for the third quarter were as follows:
For the Americas net sales increased by 2%, due primarily to higher sales of maintenance products in the Canada and Latin America markets which increased 23% and 10%, respectively.
Net sales in EMEA decreased 16% in the third quarter due primarily to lower sales of maintenance products in both the EMEA direct and distributor markets, which decreased 13% and 21% respectively.
Net sales in Asia-Pacific decreased 28% in the third quarter due primarily to lower sales of maintenance products in the Asia-Pacific distributor markets and China, which decreased 56% and 25% respectively.
The Bottom Line: WD-40 Company had net sales decreases of 9% to $124 million, due mostly to global disruptions.
What the CEO said: “In times like these I like to remind stakeholders to see the forest through the trees. We continue to be a business with a very strong moat, diversified across many trade channels and countries around the world,” said Garry Ridge, WD-40 chairman and CEO.
Company info: Click HERE to read the full third fiscal quarter financial report from WD-40 Company.