Net sales drop 4% for WD-40

WD-40 Company reported a 4% net sales decrease for the first fiscal quarter ended Nov. 30, largely due to the effects of foreign currency translation.

Total net sales for the first quarter were $89.2 million, though on a constant currency basis, total net sales for the first quarter would have been $95.1 million, an increase of 3% compared to the prior-year fiscal quarter.

Net income for the first quarter was $11.8 million, down 3% year-over-year.

Gross margin percentage rose, however, to 57.2% from 55.6%.

"As a global company that generates nearly 40% of its sales in currencies other than the U.S. dollar, foreign currency exchange headwinds continue to have an impact on our reported results," said Garry Ridge, WD-40 Company's president and chief executive officer.

"Even though the global nature of our business exposes us to some currency risk, our geographically diversified business also acts as a natural hedge which can cushion us from the impact of localized events. At any given time, depending on what is going on in a particular region, some of our markets will over perform while others may underperform.  While we expect we will continue to see fluctuations in the performance of certain markets quarter to quarter, our long-term growth plans remain unchanged," concluded Ridge. 

The company also reaffirmed its guidance for fiscal year 2017, with net sales growth projected to be between 4 and 6%, with net sales expected to be between $395 million and $404 million.