Why This Matters to Distributors: Global Industrial attributed sales growth to industrial and retail customers and its largest accounts, citing closer coordination among sales, marketing, and merchandising teams. Tariff refunds also boosted earnings, accounting for most of the year over-year increase in nine-month operating income.
Global Industrial’s third-quarter sales increased 10.2% and net income rose 30.9%, as the industrial equipment and supplies distributor reported growth among industrial and retail customers and its largest accounts.
The Port Washington, New York-based company reported sales of $389.5 million, up from $353.6 million a year earlier. Net income increased to $24.6 million from $18.8 million, according to results released Nov. 3.
Average daily sales increased 8.5%, adjusting for selling days and currency translation. The quarter included 64 U.S. selling days, one more than a year earlier, and marked the company’s fourth consecutive quarter of high-single-digit average daily sales growth.
“Revenue growth was led by our industrial and retail customer verticals and strong double-digit performance among our largest strategic accounts,” CEO Anesa Chaibi.
Chaibi said Global Industrial’s sales strategy is helping it pursue larger opportunities and capture more customer spending. Over the past year, the company has focused on understanding customer needs, developing industry expertise and coordinating its sales, marketing, and merchandising teams more closely.
“Our go-to-market strategy is strengthening customer relationships, enabling us to win larger opportunities and to capture greater share of wallet,” she said.
The announcement did not disclose growth rates for individual customer categories or their largest accounts. Global Industrial’s fiscal quarter ended Oct. 3, although the company presents its results as ending Sept. 30.
Third-quarter net income from continuing operations increased 30.3% to $24.5 million from $18.8 million. Total net income also included $100,000 from discontinued operations.
Operating income from continuing operations increased 24.3% to $32.7 million from $26.3 million. Operating margin rose to 8.4% from 7.4%, while selling, general and administrative expenses increased to $106.2 million from $99.7 million.
Tariff refunds contributed approximately $2 million to quarterly operating income and about 4 cents to diluted earnings per share from continuing operations. Gross margin increased to 35.7% from 35.6%, including a benefit of approximately 0.6 percentage points from the refunds.
For the first nine months, sales increased 9% to $1.13 billion from $1.03 billion. Average daily sales increased 8.5%.
Nine-month net income increased 36.2% to $78.3 million from $57.5 million. Net income from continuing operations rose 34% to $76.9 million from $57.4 million, with the remainder coming from discontinued operations.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
