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Nov 30, 2022
WD-40 Q1 2023 Earnings Report
WD-40 Company's financial results for Q1 2023 were reported, with gross margin improving sequentially and fiscal year 2023 guidance reiterated.
Key Takeaways
WD-40 Company reported a decrease in net sales by 7% to $124.9 million, and a decrease in net income by 25% to $14.0 million, with diluted earnings per share at $1.02. Gross margin percentage increased to 51.4 percent. The company reiterated its fiscal year 2023 guidance.
Total net sales decreased by 7% to $124.9 million compared to the prior year fiscal quarter.
Net income decreased by 25% to $14.0 million from the prior year fiscal quarter.
Diluted earnings per share were $1.02, down from $1.34 in the prior year fiscal quarter.
Gross margin percentage increased to 51.4 percent compared to 50.8 percent in the prior year fiscal quarter.
WD-40
WD-40
WD-40 Revenue by Segment
WD-40 Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEIMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEIMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.com Forward Guidance
The Company reiterated the following guidance for fiscal year 2023: Net sales growth is projected to be between 5 and 10 percent with net sales expected to be between $545 million and $570 million. Gross margin percentage for the full year is expected to be between 51 and 53 percent. Advertising and promotion investments are projected to be between 5.0 and 6.0 percent of net sales. The provision for income tax is expected to be around 22 percent. Net income is projected to be between $69.0 million and $71.0 million. Diluted earnings per share is expected to be between $5.09 and $5.24 based on an estimated 13.6 million weighted average shares outstanding.
Positive Outlook
- Net sales growth is projected to be between 5 and 10 percent.
- Net sales are expected to be between $545 million and $570 million.
- Gross margin percentage for the full year is expected to be between 51 and 53 percent.
- Advertising and promotion investments are projected to be between 5.0 and 6.0 percent of net sales.
- Diluted earnings per share is expected to be between $5.09 and $5.24.
Challenges Ahead
- Net sales guidance was calculated using recent foreign currency exchange rates and reflects currency headwinds of approximately 5 percent.
- Guidance does not include any future acquisitions or divestitures.
- Unanticipated inflationary headwinds may further affect the Company’s financial results.
- COVID-19 related impact may further affect the Company’s financial results.
- Other unforeseen events may further affect the Company’s financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income