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Feb 28, 2021

WD-40 Q2 2021 Earnings Report

WD-40's second quarter earnings increased compared to the prior year fiscal quarter.

Key Takeaways

WD-40 Company reported a 12% increase in net sales for the second quarter compared to the prior year, reaching $111.9 million. Diluted earnings per share were $1.24, up from $1.04 in the prior year fiscal quarter. Net income increased by 20% to $17.2 million.

Total net sales for the second quarter increased by 12% compared to the prior year fiscal quarter.

Net income for the second quarter increased by 20% compared to the prior year fiscal quarter.

Diluted earnings per share were $1.24 in the second quarter, compared to $1.04 per share for the prior year fiscal quarter.

Gross margin was 55.4 percent in the second quarter compared to 53.6 percent in the prior year fiscal quarter.

Total Revenue
$112M
Previous year: $100M
+11.9%
EPS
$1.24
Previous year: $1.04
+19.2%
Gross Profit
$62M
Previous year: $53.6M
+15.7%
Cash and Equivalents
$72.4M
Previous year: $30.5M
+137.3%
Free Cash Flow
$14.8M
Previous year: $3.45M
+329.4%
Total Assets
$406M
Previous year: $333M
+21.8%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 Revenue by Geographic Location

Forward Guidance

WD-40 Company expects net sales to be in a range of between $445 million to $475 million for the full fiscal year. This upward revision is driven primarily by favorable changes in foreign currency exchange rates.

Positive Outlook

  • Expects net sales between $445 million and $475 million.
  • Favorable changes in foreign currency exchange rates.
  • High demand for maintenance products.
  • Improved market conditions due to reduction of COVID-19 lockdown measures in many markets.
  • Increased sales through the ecommerce channel.

Challenges Ahead

  • Pandemic has caused some disruptions and constraints to the supply chain.
  • Supply chain challenges primarily in the Americas.
  • Impacted ability to meet the increased end user demand in the United States.
  • Shipping container shortages in the Asia region.
  • Marketing distributors are continuing to adjust to more normalized inventory levels.

Revenue & Expenses

Visualization of income flow from segment revenue to net income