Business
WD-40 Company Reports First Quarter 2023 Financial Results
~ Gross margin improves 400 basis points sequentially compared to fourth fiscal quarter ~ ~ Management reiterates fiscal year 2023 guidance ~ SAN
About this update from Wd-40 Company
[{"type":"text","content":"\n~ Gross margin improves 400 basis points sequentially compared to fourth fiscal quarter ~\n\n~ Management reiterates fiscal year 2023 guidance ~\n\n SAN DIEGO--(BUSINESS WIRE)--\nWD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its first fiscal quarter ended November 30, 2022.\n\nFinancial Highlights and Summary\n\n\nTotal net sales for the first quarter were $124.9 million, a decrease of 7 percent compared to the prior year fiscal quarter.\n\n\nTranslation of the Company’s foreign subsidiary results from their functional currencies to U.S. dollars had an unfavorable impact on sales for the first quarter. On a constant currency basis, total net sales would have been $134.4 million for the first quarter.\n\n\nNet income for the first quarter was $14.0 million, a decrease of 25 percent from the prior year fiscal quarter.\n\n\nDiluted earnings per share were $1.02 compared to $1.34 in the prior year fiscal quarter.\n\n\nGross margin percentage was 51.4 percent compared to 50.8 percent in the prior year fiscal quarter.\n\n\nSelling, general and administrative expenses were up 4 percent in the first quarter to $40.0 million compared to the prior year fiscal quarter.\n\n\nAdvertising and sales promotion expenses were down 5 percent to $5.3 million compared to the prior year fiscal quarter.\n\n\n“Today we are happy to report that in the first quarter gross margin improved sequentially by 400 basis points compared to the fourth quarter of fiscal year 2022,” said Steve Brass, WD-40 Company’s president and chief executive officer. “This is evidencing the positive impact of the gross margin restoration plan we put into place to combat the current inflationary environment.”\n\n“While we saw topline growth in our Asia-Pacific and Americas segments, our EMEA segment reported sales that were softer than we would like to see. In EMEA, we’ve experienced significant headwinds from fluctuating currency exchange rates, a lower level of customer orders, weaker economic conditions, and a reduction in sales linked to our decision to suspend sales in Russia in 2022.”\n\n“Though sales volumes were soft in some regions due to disruptions in the market ...