MSC Industrial Supply Co. reported estimated sales dropped 7.3%-7.1% to $978-$980 million in the fiscal third quarter of 2024, which ended June 1.

Average daily sales rose 3% sequentially.

The company expects Earnings Per Share (EPS) to be in the range of $1.26 - $1.28, while adjusted EPS should be in the range of $1.32 - $1.34.

CEO Erik Gershwind said “softer than expected” preliminary third quarter results were driven by two factors.

“First, while average daily sales improved sequentially, ongoing heavy manufacturing softness and a slower than anticipated ramp in our Core Customer resulted in a lower sequential revenue improvement than anticipated.

“Second, gross margins were approximately 60 basis points below our expectations primarily due to, in roughly equal proportion, increased product and customer mix headwinds and unexpected dilution from our web price realignment.”

Gershwind reaffirmed MSC’s commitment to ending and other “high touch solutions” while promising improvement in its website rollout, with corrective actions to be taken on web price realignment to improve gross margin trends.

The company will release full sales figures on July 2. Web: mscdirect.com