MSC Industrial Supply Company, (NYSE: MSM), Melville, N.Y., and Davidson, N.C., a North American distributor of metalworking and maintenance, repair and operations (MRO) products and services, reported sales for its fiscal third quarter ended June 1, 2024, were $979.4 million, down 7.1% from the prior-year period.
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Profit for the quarter was $71.7 million, down 24.7%.
Year to date, sales were $2.87 billion, a 3.5% decrease. Profit was $202.9 million.
“As announced on June 13, we began the second half of our fiscal year with unexpected gross margin pressure and a slower than expected recovery in average daily sales, particularly within our Core customer base,” said Erik Gershwind, president and CEO. “As a result, our third-quarter performance was below expectations and led to a revised full year outlook. We responded with swift corrective actions to improve gross margin trending and accelerate progress on the rollout of our web enhancements.”
“Average daily sales declined 7.1% in the fiscal third quarter driven by non-repeating Public Sector orders in the prior year and softness in manufacturing verticals where we have heavy exposure,” said Kristen Actis-Grande, CFO. “While we are encouraged by continued strong cash flow generation, these results nonetheless fell below our expectations. We are laser-focused on realizing the expected benefits of our organic growth investments to drive progress towards our long-term targets.”
