The third quarter was a big one for maintenance, repair and operations (MRO) distributor Global Industrial Inc.
For the third quarter ended Sept. 30, Global Industrial posted sales of $354.6 million. That’s an increase of 18.8% from sales of $298.5 million in the third quarter of the prior year. Net income also grew, reaching $20.7 million compared $20.3 million in Q3 2002.
“Top line performance was once again led by our ecommerce channel, as recent investments and actions to drive digital transformation and enhance the online shopping experience are delivering returns,” says CEO Barry Litwin.
For the first nine months of the year, Global Industrial sales increased 5.4% to $954.2 million. That’s compared to $905.6 million in the prior year. “We continue to leverage digital marketing to deliver healthy customer acquisition and retention rates,” Litwin told analysts on the recent earnings call based on a transcript from Seeking Alpha. “Our web and marketing teams have been doing an outstanding job executing on our strategy, and we’ve been very pleased with the recent ecommerce performance.”
For the year, Global Industrial is counting on basic business performance and smaller customer orders to generate sales. “Our direct one-to-one sales channel remains a key focus to deepen customer relationships, build larger accounts and expand into new end markets,” Litwin told analysts. “While we did see some nice gains in select national and public sector accounts, and overall order volume improved, we continue to see muted large order volume. This reflects the cautious customer behavior we’ve observed throughout the year.”
About 60% of all Global Industrial sales are now generated digitally, the company said in the second quarter.
Percentage changes may not align exactly with dollar figures due to rounding.
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