MSC Raises Outlook After 3Q Daily Sales Uptick - Modern Distribution Management

Log In

MSC Raises Outlook After 3Q Daily Sales Uptick

MRO and metalworking supplies distributor MSC Industrial Supply reported double-digit sales growth for the fifth consecutive quarter.

MRO and metalworking supplies distributor MSC Industrial Supply reported double-digit sales growth for the fifth consecutive quarter during its 2023 third-quarter fiscal results, which covered March 4 to June 3 of this year. 

MSC posted 3Q sales of $1,054.5 million, a 10% increase year-over-year, and an increase from 2Q’s $962 million in sales.

President and CEO Erik Gershwind said in the June 29 earnings release that the 3Q sales growth was aided by a robust public sector performance and the execution of several growth initiatives, including diversifying end markets.

“We delivered average daily sales growth of nearly 12% [11.7%] and outperformed the [Industrial Production] index by double digits for the second consecutive quarter,” Gershwind said. “ Looking ahead and despite macro uncertainty, we expect to continue outperforming the IP index as we leverage MSC-specific momentum and strengthen our market position through strategic investments.” 

MSC posted a 3Q gross margin of 40.7%, down from 41.3% in 2Q. 

Operating income of $135.4 million (or $138.6 million adjusted to exclude share reclassification proposal costs and restructuring and other costs), down year-over-year from $136.8 million and up from 2Q’s $114 million.

The company’s 3Q operating margin was 12.8%, down from 14.3% in the same quarter last year. 

Melville, New York-based MSC is the No. 6 MRO distributor, No. 5 fastener distributor and No. 13 industrial distributor on MDM’s 2023 Top Distributors list.

MSC updated its fiscal 2023 full-year outlook, assuming additional mix headwinds related to public sector growth.  The adjusted operating margin is about 12.7%. The company expected to achieve double-digit ADS growth of between 10 and 11% year-over-year. 

“Another quarter of above-market sales growth provides clear evidence that MSC continues to take market share,” said Kristen Actis-Grande, the company’s Executive Vice President and Chief Financial Officer. “This drove meaningful cash generation during the quarter, despite the impact on gross margin from a significant Public Sector contract win and overall customer mix. As a result of our ongoing execution, we are raising fiscal 2023 sales guidance and remain confident in future profitable growth.”

Earlier this month, MSC announced it would reclassify the company’s equity structure, including the elimination of the company’s Class B Common Stock, which is held by the Jacobson/Gershwind family and entities affiliated with the family.

The company also added Ryan Mills as Head of Investor Relations.

Related Posts

Share this article

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.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, 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
  • 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



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
  • 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

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.