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WD-40
🇺🇸 NASDAQ:WDFC
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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.

Total Revenue
$139M
Previous year: $130M
+6.8%
EPS
$1.14
Previous year: $1.21
-5.8%
Gross Margin
52.4%
Previous year: 50.8%
+3.1%
Ad & Promo Expenses
$6.73M
Previous year: $6M
+12.1%
SG&A Expenses
$45M
Previous year: $37.7M
+19.4%
Gross Profit
$71.6M
Previous year: $66.1M
+8.3%
Cash and Equivalents
$55.4M
Previous year: $38M
+45.9%
Free Cash Flow
$16.7M
Previous year: $8.4M
+98.5%
Total Assets
$442M
Previous year: $450M
-1.8%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 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.
  • Changes in the political conditions or relations between the United States and other nations.
  • Impacts from inflationary trends and supply chain constraints.
  • Changes in interest rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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