Q1 sales increase 4% for WD-40 Co.
Sales were up, but earnings were down for San Diego-based WD-40 Co.
Sales for the first quarter ended Nov. 30 were $80.9 million, an increase of 4% from the first quarter last year. Net income for the first quarter was $9.1 million, down 4% from the prior fiscal year first quarter.
"We had a solid performance in the first quarter that reflects the hard work and focus we have put into our four strategic initiatives, and that continues to serve us well," said Garry O. Ridge, WD-40 president and CEO. "As it relates to the geographic expansion strategic initiative, we have been successful in building our base business across the globe and we have seen robust growth in many international markets, while maintaining our gross margins above our target of 50%."
America's segment first quarter sales were $39.2 million, down 10% compared to the first quarter of last fiscal year. Most of the company's first-quarter sales -- 62% -- were from outside the U.S.
"The solid growth we have seen in markets like China, where we doubled our sales in the first quarter, is a result of us building our core business coupled with significant promotional activity aimed at building distribution and increasing end-user awareness."
WD-40 Company expects fiscal year 2011 net sales to grow 5.7 % to 10.4% to the range of $340 to $355 million.