Global Industrial sales increase 18.1%
Global Industrial Co. reported an 18.1% increase in first-quarter consolidated sales – $323.4 million compared to $273.8 million last year. Excluding Indoff, acquired on May 19, 2023, sales increased 4.2% and 4.3% on an average daily sales basis.
Consolidated gross margin declined to 34.3% compared to 35.9% last year. Excluding Indoff, gross margin was 35.8%, a 10 basis point reduction to prior year.
Consolidated operating income from continuing operations decreased 2.2% to $17.4 million compared to $17.8 million last year. Excluding Indoff, operating income was $16.1 million, a decrease of 9.6%. Net income per diluted share from continuing operations decreased 2.9% to $0.34 compared to $0.35 last year.
"First quarter revenue improved 18.1% to $323.4 million dollars and on an organic basis we posted our third consecutive quarter of growth with revenue up 4.2%," said Chief Executive Officer Barry Litwin. "Our performance reflects a continuation of the cautious customer purchasing behavior we have seen for the past several quarters. E-commerce was once again our leading channel and we are seeing strong growth in our enterprise business as it benefits from new account generation and healthy retention rates. Order and volume trends were solid and partially offset by continued price headwinds. We remain pleased with gross margin performance, which was essentially flat on an organic basis for both the prior year and sequential quarter.
"We are focused on championing the customer across every facet of the business and delivering an exceptional end-to-end shopping experience," he continued. "This includes enhancing the quality and value we provide, to elevating our position as a solutions provider and problem solver for our customers. We are making continued investments in sales, marketing, merchandising and customer service that will help us drive operating efficiencies, accelerate customer engagement, strengthen our competitive position and capture market share. We continue to differentiate our position in the market and in turn strengthen our ability to drive long-term performance."
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
