MSC Industrial Supply on Thursday reported a 10% jump in net sales in its latest fiscal quarter, but the distributor’s earnings and margins declined compared to last year.
The Long Island-based company said sales rose from $959 million in the previous fiscal third quarter to more than $1.05 billion in its most recent three-month reporting window.
Net income attributable to MSC, however, fell from nearly $100 million to just over $95 million over that span, which translated to a drop from $1.78 to $1.69 in diluted earnings per share. Operating margin also declined from 14.3% to 12.8% year-over-year.
MSC officials touted a fifth consecutive quarter of double-digit sales growth and said the numbers reflected a continued increase in its share of the distribution market. President and CEO Erik Gershwind added that the company is nearing the end of a three-year effort to bolster growth, and highlighted a recent overhaul of its stock structure, which he said would enhance the company’s corporate governance.
The company revised its full-year sales growth forecast from 5-9% up to 10-11%, but officials now anticipate an adjusted operating margin at the low end of its previous outlook. MSC also reduced projections for its gross margin heading into the final quarter of its fiscal year.
“Combined with future benefits from our ‘Mission Critical’ journey and top-line momentum, we believe that we are well positioned to deliver value to all stakeholders in fiscal 2024 and beyond,” Gershwind said.
MSC came in at no. 7 on ID’s 2022 Big 50.
