WD-40 Q2 sales rise 5%
WD-40 reported second quarter 2018 net sales of $101.3 million, a 5% percent increase compared to net sales of $96.5 million in the second quarter 2017.
The San Diego, Calif.-based manufacturer also reported a net income of $14.8 million for the second quarter, up 19% from a net income of $12.4 million.
Net sales of maintenance products increased 5% during the quarter while sales of homecare and cleaning products rose 2% for the period.
"Overall, we are off to a solid start in fiscal year 2018 with year-to-date net sales growth of 7%on a reported basis and 4% on a constant currency basis," said Garry Ridge, WD-40 Company's president and chief executive officer. "Unfortunately, we are seeing the impact globally of higher commodity prices which have begun to deteriorate our gross margins.”
Due to rising commodity prices, Ridge said that the company will make pricing adjustments to ensure WD-40’s gross margin remains above its target of 55% over the long-term, the company said.
As a result of savings, the company expects to realize from the Tax Cuts and Jobs Act, WD-40 said it will invest an additional $1 million in brand building this year.
The San Diego, Calif.-based manufacturer also reported a net income of $14.8 million for the second quarter, up 19% from a net income of $12.4 million.
Net sales of maintenance products increased 5% during the quarter while sales of homecare and cleaning products rose 2% for the period.
"Overall, we are off to a solid start in fiscal year 2018 with year-to-date net sales growth of 7%on a reported basis and 4% on a constant currency basis," said Garry Ridge, WD-40 Company's president and chief executive officer. "Unfortunately, we are seeing the impact globally of higher commodity prices which have begun to deteriorate our gross margins.”
Due to rising commodity prices, Ridge said that the company will make pricing adjustments to ensure WD-40’s gross margin remains above its target of 55% over the long-term, the company said.
As a result of savings, the company expects to realize from the Tax Cuts and Jobs Act, WD-40 said it will invest an additional $1 million in brand building this year.