Sales inch ahead for WD-40 in Q2

WD-40 Company reported a 2% sales increase for its second quarter, though it came in behind the year-ago quarter in terms of its bottom line.

Net sales for the quarter ended Feb. 28 were $96.5 million, up 2% year-over-year. This is counting an unfavorable impact from the translation of foreign subsidiary results to U.S. dollars.

Net income for the second quarter was $12.4 million, down 10% year-over-year.

"Fluctuating foreign currency exchange rates continue to obscure the true strength of our business and they negatively impacted both our top-line and bottom line results in the second quarter," said Garry Ridge, WD-40 Company's president and chief executive officer.

"Even with the impacts of foreign currency headwinds included, we had 4% growth in sales of our maintenance products, which continue to be our core strategic focus, and a 5% increase in operating income," he added. "Our net income was negatively impacted as a result of fluctuations in some non-operating currency related items period over period, as well as an adjustment that we recorded to our income tax expense in the second quarter of this year.  As we look to the remainder of fiscal year 2017, we've updated our fiscal year guidance and we remain confident in our strategy and are staying the course."

Segment-wise, sales in the Americas were down 1% primarily due to a 10% decrease in homecare and cleaning product sales. However, sales of maintenance products increased slightly, especially in Canada.

The company also updated its fiscal 2017 guidance, with projected net sales growth of between 2 and 4%, with net sales expected to be between $390 million and $395 million. Net income is projected to be between $51.3 million and $52.3 million.