Fastenal moves at a nice clip in Q1

Fastenal Company rode a wave of positive momentum in the first fiscal quarter, with improvements of at least 6% in both its top and bottom line.

Net sales for the quarter ended March 31 were $1.05 billion, up 6.2% over the previous year's $986.7 million, driven primarily by higher unit sales from increases in sales at existing store locations, growth in the industrial vending business, and growth in new and existing Onsite locations.

Sales of fastener products grew 0.8%, and sales of non-fastener products grew 9.4% (and represented 64.4% of total sales during the quarter).

Net earnings came in at $134.2 million, up 6.3% over the year-ago quarter's $126.2 million.

                    

"We are pleased with the improving pace of business growth in the first quarter of 2017," said Dan Florness, President and Chief Executive Officer. "This is a welcome sign of improving customer business activity and of the traction we are gaining in our growth drivers. Thank you to our customers for their belief in Fastenal. Go Blue Team!"

However, gross profit declined 40 basis points to 49.4% from 49.8% in the first quarter of 2016, largely due to a change in customer and product mix.