Global Industrial Company saw its earnings and profit margin slide despite stronger sales in its latest fiscal quarter, company officials announced Wednesday.
The Long Island-based distributor said net sales increased from $277 million in the third quarter of 2021 to $299 million in the most recent reporting period, an increase of 7.6% year-over-year.
Gross profit also climbed from $102 million to $107 million over that span, but both the company’s gross and operating margins, as well as net income, were off compared to the same quarter last year. The gross margin dropped from 36.8% to 35.7%, while the operating margin went from 11% to 9.2%. Net income from continuing operations fell from $23.2 million to $20.3 million, or from $0.61 to $0.53 on a per-share basis.
Global Industrial CEO Barry Litwin said the gross margin remained healthy despite dropping from the record levels seen in the previous third quarter.
“During the quarter, we saw further sales growth in the Global Industrial private brand offering and our one-to-one managed sales channel,” Litwin said in a statement. “We also improved our inventory position, generated strong cash flow from operations and continue to maintain a very strong balance sheet."
The company on Wednesday also announced the official opening of a new distribution center in Toronto. The new hub, which replaces a smaller Toronto warehouse, will bolster the company’s Canadian footprint and inventory capacity more than three-fold, company officials said.
