Global Industrial 1Q Sales Drop 5% YoY - Modern Distribution Management

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Global Industrial 1Q Sales Drop 5% YoY

The company reported 1Q 2023 gross profit of $98.4 million, down from the $107.8 million reported during the same quarter in 2022.
Global Industrial building

On May 2, Port Washington, New York-based Global Industrial Company reported first-quarter 2023 sales of $273.8 million, a 5.1% decrease compared to $288.6 million during the first quarter of 2022. Sales decreased 3.7% on an average daily sales basis, while consolidated gross margin declined to 35.9% compared to 37.4% last year, the company said.

Consolidated operating income from continuing operations decreased 39.7% to $17.8 million compared to $29.5 million last year. Net income per diluted share from continuing operations decreased 38.6% to $0.35 compared to $0.57 last year, Global Industrial reported.

It’s the second-consecutive quarter that Global Industrial has reported a year-to-year decline in sales. In 4Q 2022, sales were $260.5 million, down 0.6% from 2021’s fourth quarter, Global Industrial said.

“First quarter performance reflects a continuation of the recent demand environment,” CEO Barry Litwin said. “We recorded strong growth from our largest accounts in the quarter, and customer retention continued to be healthy, however our core small and medium business customer base remained cautious with their purchasing behavior. We were very pleased with gross margin performance of 35.9%, and product margin trends improved as we moved through the quarter benefiting from lower total landing costs.”

Litwin added, “Our focus on the customer continues to drive our strategy and we made further progress on operational excellence and digital transformation initiatives. Within our new web platform, we have identified a number of user experience changes that impacted navigation and recent performance. We have completed enhancements on the product experience to improve shop-ability and additional optimization efforts are ongoing. Looking ahead, we believe we have the tools and resources to navigate the current market conditions. Our ability to leverageGlobal Industrial Exclusive Brands offering, strong national brand assortment and pricing analytics are allowing us to provide significant value to customers, while managing our gross margin profile. We are investing in key growth initiatives to drive long-term success and continue to proactively manage our cost structure. With an exceptional balance sheet, we remain well positioned to execute on our strategy, explore organic and strategic opportunities, and build long-term value for our stakeholders.”


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