Watsco, Inc. (NYSE: WSO) reported sales for its fourth quarter ended Dec. 31, 2023, were $1.6 billion, up 1%. Organic sales (excluding acquisitions) were down 2%.
Watsco reported sales were flat for HVAC equipment (69% of sales), and a decline of 6% and 3% in other HVAC products and commercial refrigeration products, respectively. Profit in the fourth quarter was $97 million.
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In 2023, Watsco reported sales of $7.28 billion, roughly flat with 2022. Excluding acquisitions, sales were down 1%. HVAC equipment sales were flat; other HVAC products sales were down 5%; and commercial refrigeration products were down 5%. Profit in 2023 was $634 million.
In 2023:
- eCommerce sales grew 5% to $2.4 billion, or approximately 34% of total sales.
- Active ecommerce users experienced nearly 50% less attrition than non-ecommerce users.
- Watsco’s product information management (PIM) platform expanded to more than 1.5 million SKUs.
- Watsco’s authenticated user community for HVAC Pro+ Mobile Apps expanded to approximately 55,000 users.
Watsco said in a statement that 2023 performance reflected softer market conditions with more “conventional levels of pricing actions and normalized levels of HVAC system replacement.” The results also reflect a “significant product transition to higher-efficiency systems in response to regulatory requirements that went into effect on Jan. 1, 2023.” An estimated 60% of 2023 HVAC equipment sales represented new products in 2023.
Watsco’s 692 locations serve over 125,000 contractors across the United States, Canada, Mexico, Puerto Rico and Latin America.
