WD-40 Company Shares Up After Second Quarter 2022 Financial Results
Apr 8, 2022 By MarketDepth
WD-40 Company (NASDAQ: WDFC) shares jumped more than10% Friday after the Company reported financial results for its second fiscal quarter ended February 28, 2022. WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Sales Up 16%
Among the second quarter financial highlights include total net sales for the second quarter were $130.0 million, an increase of 16 percent compared to the prior year fiscal quarter. Year-to-date total net sales were $264.7 million, an increase of 12 percent compared to the prior year fiscal period.
“The resilience of the WD-40® Brand has enabled us to be off to a solid start in fiscal year 2022 with maintenance product sales up 14 percent year-to-date. I am also happy to share with you that our commitment to continuous improvement has resulted in significant improvements to our supply chain in the United States. The enhancements we have made have enabled us to increase the production capacity of our highest volume products and return to solid growth in our largest market, the United States, which experienced a 26 percent increase in maintenance product sales in the second quarter.”Garry Ridge, WD-40 Company’s chairman and chief executive officer
“Like other companies, we are in a challenging inflationary environment, which has continued to deteriorate our gross margin. We are focused and committed to managing our business so that we can restore gross margin to or above our target of 55 percent over the longer-term. We will restore our gross margin over the near-term by implementing price increases to offset the higher input costs we are experiencing. Over the longer-term our margin accretive Must-Win Battles will further enhance gross margin.”
Net income for the second quarter was $19.5 million, an increase of 13 percent compared to the prior year fiscal quarter. Year-to-date net income was $38.1 million, a decrease of 7 percent from the prior year fiscal period.
“As we look to the remainder of the fiscal year, we’ve reduced our net income guidance by approximately two percent for the full fiscal year due to the challenging inflationary environment we are currently operating in. However, we have been able to maintain our revenue guidance and believe we will finish fiscal year 2022 with both topline and bottom-line growth.”Garry Ridge, WD-40 Company’s chairman and chief executive officer