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Nov 30, 2024
WD-40 Q1 2025 Earnings Report
WD-40 Company's first quarter 2025 financial results were reported, showing net sales growth and strategic execution.
Key Takeaways
WD-40 Company reported a 9% increase in net sales for the first quarter of fiscal year 2025, reaching $153.5 million. The company's gross margin improved to 54.8%, and diluted earnings per share increased by 9% to $1.39. Management reiterated its fiscal year 2025 guidance.
Total net sales increased by 9 percent compared to the prior year fiscal quarter, reaching $153.5 million.
Gross margin improved to 54.8 percent, up from 53.8 percent in the prior year fiscal quarter.
Operating income increased by 4 percent to $25.1 million compared to the prior year fiscal quarter.
Diluted earnings per share increased by 9 percent to $1.39 compared to $1.28 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 fiscal year guidance on a pro forma basis:
Positive Outlook
- Net sales growth is projected to be between 6 and 11 percent with net sales between $600 million and $630 million after adjusting for estimated translation impacts of foreign currency.
- Gross margin for the full year is expected to be between 54 and 55 percent.
- Advertising and promotion investments are projected to be around 6 percent of net sales.
- Operating income is projected to be between $95 million and $100 million. This range reflects anticipated growth of between 6 to 12 percent compared to 2024 pro forma results.
- Diluted earnings per share is expected to be between $5.20 and $5.45 based on an estimated 13.5 million weighted average shares outstanding. This range reflects anticipated growth of between 9 to 14 percent compared to 2024 pro forma results.
Challenges Ahead
- Unanticipated inflationary headwinds may affect the Company’s financial results.
- Other unforeseen events may affect the Company’s financial results.
- Net sales guidance is adjusted for estimated translation impact of foreign currency use weighted average fiscal year 2024 foreign currency exchange rates.
- If the Company is unsuccessful in the divestiture of its assets currently held for sale, its guidance would be positively impacted by approximately $23 million in net sales.
- If the Company is unsuccessful in the divestiture of its assets currently held for sale, its guidance would be positively impacted by approximately $6 million in operating income, and approximately $0.33 in diluted EPS for the full fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income