MSC Industrial Supply Co. (NYSE: MSM) last week reported fiscal 2022 1Q sales of $848.5 million, a 9.9% increase over the same period a year ago.

The company reported average daily sales growth of nearly 500 basis points above Industrial Production Index and an
operating income of $90.7 million for the period ending Nov. 27.

“Our fiscal first quarter was a strong start to the year,” MSC President and CEO Erik Gershwind said. “Average daily sales grew 9.9% as we sustained our market share capture rate by outgrowing the Industrial Production Index by nearly 500 basis points. We translated that top line growth into double digit earnings growth and strong operating expense leverage. Gross margins, on the other hand, came in below our expectations. We implemented countermeasures quickly and saw improvement towards the end of the quarter and into December. We expect gross margins to bounce back in our fiscal second quarter and we expect to achieve our goal of keeping gross margins roughly flat for the full year.”