WD-40 Company Experiences Strong First Quarter 2025 Performance, Driven by Double-Digit Growth in Maintenance Products
The WD-40 Company has announced a robust first quarter fiscal year 2025 performance, with net sales reaching $153.5 million and marking a 9% increase from the same period last year.
According to the company's President and Chief Executive Officer, Steve Brass, this growth is largely driven by double-digit increases in maintenance products, which rose to $145.5 million for the quarter, a 10% gain compared to the first quarter of the previous fiscal year.
This marks the third consecutive quarter of double-digit growth in this category, further solidifying WD-40's core strategic focus. Gross margin also improved significantly, moving closer to the company's target of 55%, with a reported gross margin of 54.8% for the first quarter, an improvement of 70 basis points sequentially from the fourth quarter and 100 basis points compared to the same period last year.
As Brass noted, this improvement in gross margin is driving increased profitability at the bottom line, with net income rising 8% to $18.9 million for the first quarter compared to prior year. The company reported strong volume performance across various trading blocks, with nearly 90% of growth driven by increased sales volume globally.
Specifically, the Americas saw an 8% increase in sales, while EMEA experienced a 13% boost over the same period last year. Asia Pacific, however, was down 8%, largely due to a strong prior-year quarter being lapped. Within the Americas, WD-40 Multi-Use Product saw significant growth, increasing 9% compared to the previous year's quarter.
The company also highlighted its ongoing commitment to strategic enablers and Must-Win Battles, with Sara Hyzer, Vice President and Chief Financial Officer, providing updates on these initiatives during the conference call. Furthermore, WD-40 emphasized its progress towards its 55/30/25 business model, which aims to prioritize maintenance products as a core focus while also pursuing growth opportunities in other areas.
The company expressed optimism for fiscal year 2025, citing continued momentum and strategic focus. Investors are encouraged to review the earnings presentation, press release, and Form 10-Q on WD-40's Investor Relations website for more detailed information.
