Posted May 3, 2023

Sales dip 5% for Global Industrial

Global Industrial Co. reported its first quarter consolidated sales decreased 5.1% to $273.8 million compared to $288.6 million last year. Sales decreased 3.7% on an average daily sales basis.

Consolidated gross margin declined to 35.9% compared to 37.4% last year. Consolidated operating income from continuing operations decreased 39.7% to $17.8 million compared to $29.5 million last year.

Net income per diluted share from continuing operations decreased 38.6% to $0.35 compared to $0.57 last year.

"First quarter performance reflects a continuation of the recent demand environment," said Chief Executive Officer Barry Litwin. "We recorded strong growth from our largest accounts in the quarter, and customer retention continued to be healthy, however our core small and medium business customer base remained cautious with their purchasing behavior. We were very pleased with gross margin performance of 35.9%, and product margin trends improved as we moved through the quarter benefiting from lower total landing costs.

"Our focus on the customer continues to drive our strategy and we made further progress on operational excellence and digital transformation initiatives," he continued. "Within our new web platform, we have identified a number of user experience changes that impacted navigation and recent performance. We have completed enhancements on the product experience to improve shop-ability and additional optimization efforts are ongoing. Looking ahead, we believe we have the tools and resources to navigate the current market conditions. Our ability to leverage Global Industrial Exclusive Brands offering, strong national brand assortment and pricing analytics are allowing us to provide significant value to customers, while managing our gross margin profile. We are investing in key growth initiatives to drive long-term success and continue to proactively manage our cost structure. With an exceptional balance sheet, we remain well positioned to execute on our strategy, explore organic and strategic opportunities, and build long-term value for our stakeholders."

At March 31, 2023, the company had total working capital of $179.6 million, cash and cash equivalents of $48.2 million, excess availability under its credit facility of approximately $116.6 million and no outstanding debt.