WD-40 Q1 net sales rise on gross margin improvement

Overview

• Global maintenance product firm's Q1 net sales rose 1% yr/yr

• Q1 net income decreased 8% yr/yr

• Diluted EPS for Q1 fell 8% yr/yr

Outlook

• WD-40 reaffirms fiscal 2026 guidance, expects results toward mid-to-high end of ranges

• Company projects fiscal 2026 net sales between $630 mln and $655 mln

• WD-40 expects fiscal 2026 EPS between $5.75 and $6.15

Result Drivers

• DIRECT MARKETS GROWTH - Maintenance product sales in direct markets increased 8%, driven by strong performance in the Americas and EIMEA, per CEO Steve Brass

• ASIA-PACIFIC DECLINE - Sales in Asia-Pacific fell 10%, primarily due to a 33% decrease in distributor markets, attributed to timing of customer orders

• GROSS MARGIN IMPROVEMENT - Gross margin increased to 56.2%, up from 54.8% in the prior year, attributed to operational efficiency

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the household products peer group is "buy"

• Wall Street's median 12-month price target for WD-40 Co is $297.50, about 49.5% above its January 7 closing price of $198.98

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nBw9SyTZwa

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