Watsco, Inc. (NYSE: WSO) announced 15% sales growth in the second quarter of 2022 to $2.13 billion. Net income was $225 million.
Watsco reported a 13% increase in HVAC equipment sales, which comprised 70% of sales. The company also reported a 15% growth in other HVAC products and a 26% boost in commercial refrigeration products.
“Watsco is proud to deliver another record quarter, especially when compared to the exceptional performance achieved in the same period last year when same-store sales grew 29%, and EPS grew 64%. Our technology platforms are making an impact as evidenced by our growing market share and financial performance,” Watsco’s Chairman and CEO, Albert H. Nahmad, said.
Technology investments include:
- Product Information Management (PIM), which has 1.2 million SKUs accessed by 350,000 contractors and technicians annually
- Contractor Assist Mobile apps, which provide customers real-time access to critical information. The community accessing that grew 27% in the quarter.
- eCommerce sales, which were up 25% year-to-date with the annual run rate outpacing organic sales-growth rates and exceeding $2.2 billion a year.
- OnCall Air, Watsco’s digital sales platform used by HVAC/R contractors and CreditForComfort, a companion consumer financing platform.
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 email@example.com.