MSC Industrial Supply Delivers Strong Q3 Performance: Core Customer Reenergized and High-Touch Solutions Thrive
MSC Industrial Supply, a leading distributor of industrial products and material handling equipment, has reported strong fiscal third-quarter (Q3) performance for the year 2025. The company's CEO, Erik Gershwind, highlighted several key areas of progress during its recent conference call, underscoring the company's commitment to strengthening execution in critical areas.
One of these areas is reenergizing the core customer, which was a major priority for MSC entering fiscal 2025. According to Gershwind, early evidence began to emerge in Q3 as core customer daily sales declined by only 0.8% year-over-year, aligning with overall company results and exceeding sequential quarterly averages. This positive trend is supported by recent web enhancements aimed at making it faster and easier for customers to do business with MSC, improving product discovery platforms, streamlining buying journeys, and increasing personalization.
MSC's website saw significant growth, with direct traffic increasing in the low double digits year-over-year and mid-single digits quarter-over-quarter. Site conversion rate metrics also showed encouraging progress, indicating that customers are benefiting from the company's enhanced marketing and sales force optimization efforts.
An additional area of focus for MSC is maintaining momentum in high-touch solutions. During Q3, the company improved its In-Plant program count by 23% year-over-year and increased the installed base of vending machines by 9%. Expanding its OEM product line remains a priority, with average daily sales in this area improving in low single digits.
MSC's fiscal third-quarter results also demonstrated progress across other fronts. Average daily sales declined by only 0.8% year-over-year, exceeding historical sequential averages, and gross margins came in at the higher end of expectations despite tariff-driven inflation. As a result, reported and adjusted operating margins were 8.5% and 9.0%, respectively.
CEO Gershwind noted that while there is still room for improvement, MSC's Q3 performance reflects significant progress across several areas. This includes an encouraging start to newly launched growth initiatives and sustained momentum in high-touch solutions. The company's commitment to strengthening execution in critical areas, including reenergizing the core customer, maintaining momentum in high-touch solutions, and optimizing cost-to-serve, has set the stage for continued success.
The company's leadership depth is another priority area highlighted by Gershwind. MSC aims to build out its leadership team through strategic recruitment and development initiatives, positioning itself for long-term growth and success.
