Fastenal Company (Nasdaq: FAST), a wholesale distributor of industrial and construction supplies, announced sales in second quarter 2022 were up 18% to $1.77 billion. Net profit was $287 million, up 19.8% YOY.
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Although foreign exchange affected sales negatively, the company experienced overall growth due to an increased demand for manufacturing and construction equipment and supplies. The company reported that this demand drove higher unit sales and net sales.
Fastener daily sales increased 21.2% from the prior-year period and represented 34.6% of net sales. Safety product daily sales increased 13.8%, and “other” products increased by 17%. These categories represented 21% and 45.1% of second-quarter net sales, respectively.
Sales through FASTStock made up 11.5% of sales for the quarter; FASTBin/FASTVend sales made up 24.1% of sales. Total sales through the Fastenal Managed Inventory program were $640.6 million, or 35.6% of sales.
Fastenal expects 2022 signings for weighted FASTBin (infrared, RFID and scaled bins) and FASTVend (vending devices) to be between 21,000 and 23,000 units, down from their initial goal of 23,000 to 25,000. This excludes approximately 9,000 non-weighted vending devices that are part of a leased locker program.
Ian Heller is the Founder and Chief Strategist for Distribution Strategy Group. He has more than 30 years of experience executing marketing and e-business strategy in the wholesale distribution industry, starting as a truck unloader at a Grainger branch while in college. He’s since held executive roles at GE Capital, Corporate Express, Newark Electronics and HD Supply. Ian has written and spoken extensively on the impact of digital disruption on distributors, and would love to start that conversation with you, your team or group. Reach out today at iheller@distributionstrategy.com.