HARDI Distributors Report 2.8% Sales Decrease in December

Annualized growth through December is 5.3 percent.

Sales for HARDI distributor members declined by 2.8 percent in December, according to the monthly TRENDS report. The average annualized growth for the 12 months through December 2017 was 5.3 percent.

“December is not a seasonally significant month.  The decline is associated with very strong prior year sales and one less billing day this year.  That is difficult to overcome,” said HARDI Market Research & Benchmarking Analyst Brian Loftus.  “5.3 percent growth is the slowest calendar year since 2011 and recovering from the recession.”

“This is somewhat at odds with the other strong signs we see like the positive slope to the leading indicators,” said HARDI Senior Economist Connor Lokar.  “HARDI members did post strong growth in November and December 2016 and January 2017 so they set themselves up with some tall bars to clear.  The decelerating growth is a noteworthy trend to watch.”

The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is near 45 days. “The DSO is at the midpoint of recent performance for this time of year,” said Loftus. “Softer sales helped the dip from last month.  We would welcome an extra day or two in the months ahead because it would be normal seasonal pattern and indicate resumption of sales growth.”

 

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access