WD-40 Company (NASDAQ:WDFC) reported weaker-than-expected results for its first quarter on Thursday.
The San Diego-headquartered WD reported Total net sales for the first quarter were $98.6 million, a decrease of 3% compared to the prior year fiscal quarter.
Translation of the Company's foreign subsidiary results from their functional currencies to U.S. dollars had an unfavorable impact on sales for the first quarter. On a constant currency basis, total net sales for the first quarter would have been $100.8 million, relatively constant compared to the prior year fiscal quarter.
Net income for the first quarter was $12.2 million, a decrease of 8% from the prior year fiscal quarter. Diluted earnings per share were $0.88 compared to $0.95 in the prior year fiscal quarter.
Gross margin percentage was 54.3% compared to 55.1 % in the prior year fiscal quarter.
Selling, general and administrative expenses were down $0.1 million in the first quarter to $32.6 million compared to the prior year fiscal quarter. Advertising and sales promotion expenses were down 6 percent to $5.6 million compared to the prior year fiscal quarter.
"If you follow us quarter to quarter, you may not like our results this quarter," said CEO Garry Ridge.
"Our business is one in which fluctuations in the performance of our markets from quarter to quarter are not unusual. That's why we don't issue quarterly guidance and why we frequently caution investors not to follow us too closely quarter to quarter."
WD-40 shares dropped $10.02, or 5.2%, to $181.79 to begin Friday’s session
