Watsco, Inc. (NYSE: WSO), Miami, Fla., a distributor of heating, air conditioning and refrigeration (HVACR) products, announced sales for its 2023 first quarter were $1.55 billion, up 2% from the prior-year period.
Profit was $130.4 million, down 3.35% from the prior-year period.
Sales for its HVAC equipment increased by 2% compared with the prior-year period. However, sales for its other HVAC products decreased by 2%, and sales for its commercial refrigeration products increased by 12%.
eCommerce sales outpaced overall sales growth rates in the first quarter, accounting for 33% of sales (inclusive of revenues from recently acquired businesses). The HVAC Pro+ Mobile Apps grew its community to more than 53,000 users compared with a year ago.
“We view the first-quarter performance as exceptional in many respects,” said Albert H. Nahmad, Watsco’s Chairman and CEO. “Last year’s results were driven by robust unit demand, unprecedented levels of OEM pricing actions and strong end-markets, which culminated in the highest single-quarter growth rates in our history. In contrast, OEM pricing actions in 2023 were less, occurred later, and unit volumes are now adjusting toward more conventional run rates. Despite these factors, Watsco delivered record sales and successfully navigated the regulatory transition to higher SEER products across its markets.”