WINONA, Minn., July 13, 2023 (BUSINESS WIRE) — Fastenal Company (Nasdaq:FAST), a leader in the wholesale distribution of industrial and construction supplies, today announced its financial results for the quarter ended June 30, 2023. Except for share and per share information, or as otherwise noted below, dollar amounts are stated in millions. Throughout this document, percentage and dollar calculations, which are based on non-rounded dollar values, may not be able to be recalculated using the dollar values included in this document due to the rounding of those dollar values. References to daily sales rate (DSR) change may reflect either growth (positive) or contraction (negative) for the applicable period.
QUARTERLY RESULTS OF OPERATIONS
Net sales increased $104.6, or 5.9%, in the second quarter of 2023 when compared to the second quarter of 2022. The number of business days were the same in both periods. We experienced higher unit sales in the second quarter of 2023 that contributed to the increase in net sales in the period. This was primarily due to growth at our Onsite locations, particularly those opened in the last two years, which more than offset lower revenues in construction and reseller end markets related to the execution of our go-to-market branch strategy. Foreign exchange negatively affected sales in the second quarter of 2023 by approximately 40 basis points.
The impact of product pricing on net sales in the second quarter of 2023 was 190 to 220 basis points compared to the second quarter of 2022. This largely reflects the impact of general inflationary conditions in the marketplace over the past twelve months and the carryover of targeted actions taken in the first quarter of 2023 to address gross margin pressure for non-fastener and non-safety products. The impact of product pricing on net sales in the second quarter of 2022 was 660 to 690 basis points. From a product standpoint, we have three categories: fasteners, safety supplies, and other product lines, the latter of which includes eight smaller product categories, such as tools, janitorial supplies, and cutting tools.
2Q23 GROWTH DRIVER UPDATE
• Onsites: We had 86 signings in 2Q23. Active sites finished at 1,728, +15.1% from 2Q22. Daily sales, excluding transferred branch sales, grew at a high-teens rate from 2Q22. Based on the pace of signings in the first six months of 2023, we anticipate signing approximately 350 Onsite locations in 2023, adjusted from our prior range of 375 to 400 sites.
• FMI Technology: We signed 6,794 weighted devices (106/ day) in 2Q23, versus 5,490 (86/day) in 2Q22. Our installed base was 107,115 weighted devices, +10.6% from 2Q22. Activity through our FMI technology platform represented 39.8% of sales in 2Q23, versus 35.6% of sales in 2Q22 and 30.7% of sales in 2Q21. Our 2023 signings goal remains 23,000 to 25,000 MEU of FASTBin and FASTVend units.
• eCommerce: Daily sales rose 44.7% in 2Q23. Large customer-oriented electronic data interface (EDI) was up 37.3%, while web sales were up 67.7%.
• Sales through our Digital Footprint (FMI technology plus non-FMI-related eCommerce) was 55.3% of sales in 2Q23, versus 47.9% in 2Q22. We currently believe sales running through our Digital Footprint will reach 60% at some point in 2023, a revision from our previous figure of 65% due to lower FASTStock conversions than anticipated. Our long-term expectation of 85% is unchanged.
Read full report:Fastenal Company Reports 2023 Second Quarter Earnings
Q2 2023 Investor Teleconference PresentationFastenal Q2-2023-Investor-Presentation-7-12-R6_Final
Source: Fastenal Company
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