WD-40 posts mixed results in third quarter
San Diego-based WD-40 Co. posted third-quarter net sales of $85.5 million, an increase of 4% compared with the same quarter last year. Net income, however, slipped 12% to $8.1 million for the quarter ended May 31.
CEO Garry Ridge pointed to increases in commodity prices that have negatively impacted the company's gross margin, which was 49.3% in the third quarter, compared with 51.2% in the same quarter last year.
"To help improve our margins, we are implementing price increases in some markets late this fiscal year, working to bring innovation to the market sooner, and focusing our marketing efforts on increasing product usage among our heavy users to pull more product off the shelf," Ridge said.
The company's multi-purpose maintenance products -- a group that includes the namesake WD-40 brand, as well as 3-IN-ONE and Blue Works brands -- saw third-quarter sales increase 7% to $72.7 million. All other brands were down 12%.
Ridge said the company has high hopes for the development of the new WD-40 Specialist line targeting tradesmen and serious DIYers. The first three products in the line will begin shipping in the United States at the end of the fiscal year.
Increasingly, WD-40 is a global brand. "We continue to see our focus on global expansion pay off as we now have 60% of our total sales year-to-date outside the United States."