Global Industrial Company on Tuesday reported an uptick in annual sales thanks to a major acquisition during the previous year, but organic sales — along with earnings — were down for the year.
The Long Island-based distributor also saw a rough fourth quarter, with declines in both sales and earnings year-over-year.
Global Industrial said consolidated sales totaled $1.32 billion in 2024, up 3.3% compared to 2023 levels. Excluding the operations added through its purchase of Indoff, however, sales slipped by 0.6% over that span.
Gross profit rose from $436 million in 2023 to $452 million last year, but operating income and net income from continuing operations each declined — slipping from $97 million and $71 million, respectively, down to $81 million and $61 million.
Executive Chairman Richard Leeds said in the company’s earnings announcement that following top line growth in the first half of 2024, “results softened as we moved through the year” amid weakness in its base of small and mid-sized customers.
In the final quarter of the year, sales slipped 6% to $302 million compared to the fourth quarter of 2023, while operating income from continuing operations was down 32% to $15 million. Net income, meanwhile, was down 33% to $0.27 per diluted share.
Leeds, however, said the company was happy with its gross margin levels and its cash flow generation, and noted “strong retention rates, enhanced customer satisfaction, and significant improvement in quality metrics across our supply chain.”
“While we are not satisfied with our financial performance, I believe we have the right strategy in place as we continue to sharpen our execution on serving the needs of our customers and highlight the value we bring to market,” Leeds said.
Leeds recently relinquished his role as interim CEO after former Optimas Solutions and HD Supply executive Anesa Chaibi was named to succeed former CEO Barry Litwin.
Global Industrial ranked no. 20 on ID’s 2024 Big 50.
