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May 31, 2020

WD-40 Q3 2020 Earnings Report

WD-40 Company reported a decrease in net sales and diluted EPS for Q3 2020 due to COVID-19 disruptions.

Key Takeaways

WD-40 Company's Q3 2020 results were impacted by the COVID-19 pandemic, leading to a 14% decrease in net sales and a 20% decrease in net income compared to the prior year. Diluted EPS decreased to $1.06 from $1.30 in the prior year fiscal quarter. Despite these challenges, the company adapted to the situation and maintained its performance.

Total net sales for the third quarter decreased by 14% to $98.2 million due to COVID-19 disruptions.

Net income for the third quarter was $14.5 million, a 20% decrease compared to the prior year.

Diluted earnings per share were $1.06, down from $1.30 in the prior year fiscal quarter.

Gross margin was 54.0% compared to 54.5% in the prior year fiscal quarter.

Total Revenue
$98.2M
Previous year: $114M
-13.8%
EPS
$1.06
Previous year: $1.3
-18.5%
Gross Margin
54%
Previous year: 54.5%
-0.9%
Ad & Promo Expenses
$4.76M
SG&A Expenses
$27.9M
Gross Profit
$53.1M
Previous year: $62.1M
-14.5%
Cash and Equivalents
$88.6M
Previous year: $35.7M
+147.8%
Free Cash Flow
$10.7M
Previous year: $15.4M
-30.6%
Total Assets
$386M
Previous year: $313M
+23.2%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 Revenue by Geographic Location

Forward Guidance

The global health crisis is not over yet, the company maneuvered through the immediate crisis very well. The company has always had a very clear strategy with very clear targets enabled by an enviable culture. What this crisis has required the company to do is pause, reset, and become even more laser-focused on how the company will achieve its growth aspirations

Revenue & Expenses

Visualization of income flow from segment revenue to net income