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Feb 29, 2024
WD-40 Q2 2024 Earnings Report
Reported a 7 percent increase in global net sales compared to the prior year fiscal quarter.
Key Takeaways
WD-40 Company reported a 7% increase in global net sales for the second quarter, with growth across all trade blocs. Gross margin improved by 160 basis points. The company is raising its full-year 2024 net income and diluted earnings per share guidance.
Total net sales for the second quarter were $139.1 million, a 7% increase year-over-year.
Gross margin was 52.4% in the second quarter, compared to 50.8% in the prior year fiscal quarter.
Net income for the second quarter was $15.5 million, a 6% decrease from the prior year fiscal quarter.
Diluted earnings per share were $1.14 in the second quarter, compared to $1.21 in the prior year fiscal quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is providing the following guidance for fiscal year 2024: Reiterating net sales growth between 6 and 12 percent, with net sales expected to be between $570 million and $600 million on a non-GAAP constant currency basis.
Positive Outlook
- Reiterating net sales growth between 6 and 12 percent, with net sales expected to be between $570 million and $600 million on a non-GAAP constant currency basis.
- Narrowing the gross margin range to now be between 51.5 and 53 percent, compared to prior guidance of between 51 and 53 percent.
- Advertising and promotion investments are still expected to be between 5 and 6 percent of net sales.
- Lowering the provision for income tax to now be in the range of 23 and 24 percent, compared to prior guidance of between 24 and 25 percent.
- Increasing net income to now be in the range of $67.7 million and $71.8 million, compared to prior guidance of between $65 million and $70 million.
Challenges Ahead
- Unanticipated inflationary headwinds may 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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