Global Industrial Co. (NYSE: GIC), the Port Washington, New York-based parent of Global Industrial, saw net sales and income drop in 2021’s third quarter compared to the same time a year ago.
Net sales and income for the first nine months of the year, however, remained ahead of 2020 levels.
The company reported 3Q net sales of $277.4 million, a 2.9% decrease from the $285.7 million reported for the same period in 2020.
In 3Q 2021, Global reported $23.2 million in net income, a 3.7% decrease from the $24.1 million reported in 2020’s third quarter.
For the first nine months of 2021, the company reported net sales of $801.1 million, a 6% jump over the $755.1 million reported last year.
Net income for the first nine months was $49.8 million, an increase over the $47.7 million reported for that period in 2020.
“We had a solid third quarter and are very pleased with our margin performance and execution across the business,” CEO Barry Litwin said. “Customer demand was strong and accelerated in the period, however supply chain constraints limited product availability, resulting in a significant increase in open orders. While this restricted our top line results, we were pleased to see continued growth in core product lines and private label products, which we believe reflects a healthy demand environment. Gross margin achieved a record high of 36.8% and operating margin reached 11.0% as we benefited from increased sales of private label products, as well as from our strong capabilities in pricing intelligence and analytics. As a result, we delivered more than $30 million of operating income in the quarter.
Litwin continued, “This was a significant achievement in a challenging supply chain environment. Our operating performance reflects the efforts of our associates as they continue to implement our ACE strategy. We are seeing strong execution in pricing intelligence, private branded products, sales force efficiency and our rebrand and digital initiatives. While supply chain, labor and freight disruptions continue, we are proactively managing these challenges and utilizing our operational flexibility and entrepreneurial approach to address them. We are investing strategically in the business and remain disciplined in cost management, while enhancing our ability to deliver an exceptional customer experience. We believe we are well positioned for the future.”
The company reported year-over-year second quarter gains in August.
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