MSC INDUSTRIAL SUPPLY CO. REPORTS FISCAL 2025 SECOND QUARTER RESULTS

Core Insights - MSC Industrial Supply Co. reported a decline in net sales and income for the fiscal 2025 second quarter, with net sales of $891.7 million, down 4.7$39.3 million, a decrease of 36.4% compared to the same quarter last year [2][5][4]. Financial Performance - Net Sales: $891.7 million in Q2 FY25 compared to$935.3 million in Q2 FY24, reflecting a 4.7% decrease [2][5]. - Income from Operations: Reported at $62.2 million, down 31.7$91.2 million in the prior year [2][5]. - Operating Margin: 7.0% for Q2 FY25, down from 9.7% in Q2 FY24 [2][5]. - Net Income: $39.3 million in Q2 FY25, a decline of 36.4$61.8 million in Q2 FY24 [2][5]. - Diluted EPS: $0.70 for Q2 FY25, compared to$1.10 in the same quarter last year, marking a 36.4% decrease [2][5]. Adjusted Financial Metrics - Adjusted Income from Operations: $63.7 million in Q2 FY25, down 34.9$97.8 million in Q2 FY24 [2][5]. - Adjusted Operating Margin: 7.1% for Q2 FY25, compared to 10.5% in Q2 FY24 [2][5]. - Adjusted Net Income: $40.4 million in Q2 FY25, a decrease of 39.6$66.8 million in Q2 FY24 [2][5]. - Adjusted Diluted EPS: $0.72 for Q2 FY25, down from$1.18 in the prior year [2][5]. Operational Insights - The company maintained momentum in the Public Sector and launched website upgrades and enhanced marketing campaigns to drive growth [4]. - Average daily sales declined 4.7% year-over-year, but January and February showed improved performance compared to historical trends [4]. - MSC returned approximately $60 million to shareholders through dividends and share repurchases during the fiscal second quarter [4]. Future Outlook - The company aims to strengthen its market position and achieve long-term objectives, including a growth rate of 400 basis points above the Industrial Production Index and expanding operating margins to the mid-teens [4].