WD-40 Company has reported a record-setting third quarter, with net sales reaching $156.9 million. This 1% year-over-year increase was driven by strong performance in its core maintenance product lines and key international markets, though the growth was tempered by challenges in Europe and rising operational costs.
The company’s flagship maintenance products were a primary growth engine, with sales increasing 2% to $150.4 million. This growth was particularly robust in the Americas, which saw a 4% sales increase, led by a 7% rise for the WD-40 Multi-Use Product in the United States. The Asia-Pacific region also delivered strong results, posting a 7% sales increase fueled by a 19% surge in China.
WD-40’s profitability also showed significant improvement. Gross margin expanded to 56.2% from 53.1% in the prior-year period, a recovery attributed to higher average selling prices and lower input costs. Reflecting this improved financial health, diluted earnings per share rose by 5% to $1.54. The company’s digital strategy contributed to the positive momentum, with e-commerce sales growing 11% year-to-date.
Despite the overall record performance, the company faced several headwinds. Sales in the Europe, India, Middle East, and Africa (EIMEA) region declined by 5%, with sales of the WD-40 Multi-Use Product falling 6%. Operational disruptions in distributor markets, especially in Turkey and the Middle East, negatively impacted sales by an estimated $3.9 million. Furthermore, sales of homecare and cleaning products fell across all regions. These challenges were compounded by a rise in the cost of doing business, with operating expenses increasing to 38% of net sales from 34% last year, primarily due to higher employee-related costs.
Looking ahead, WD-40 Company issued an optimistic forecast for fiscal year 2025. Management projects net sales growth between 6% and 9%, with operating income expected to be in the range of $96 million to $101 million. The company anticipates diluted earnings per share to land between $5.30 and $5.60, signaling confidence in its strategic initiatives and continued market strength.
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