Global Industrial Company’s interim chief executive said Tuesday that the company is “disappointed” with its recent results after it posted a decline in sales during the latest fiscal quarter.
The Long Island-based distributor — no. 20 on ID’s 2024 Big 50 list — reported more than $342 million in third-quarter net sales, a 3.4% decline from the $355 million reported in the same quarter last year.
The company’s operating income from continuing operations fell from $28.2 million to $22.2 million over that span, translating to an operating margin that dipped from 8% to 6.5% in the latest period. Net income from continuing operations declined from $20.7 million to $16.8 million.
Global Industrial noted that gross profit was flat year-over-year as its gross margin climbed from 32.8% to 34%, and that its year-to-date sales numbers remained up both including the acquisition of Indoff and on an organic basis.
Nonetheless, Interim CEO Richard Leeds said that the company has “identified key areas for improvement” amid sluggish demand and “continued softness” amongst the company’s core small and mid-size customers.
“We are addressing this through a renewed focus on engaging and serving core customers, better communicating our value proposition to the market, and playing to our competitive strengths,” Leeds said in a statement. “As our efforts gain traction over the next few quarters, and the market environment improves, we will be in a stronger position to enhance our performance.”
