Sector: Industrials|Industry: Industrial Distribution|Market Cap: $42.77B|Employees: 23.2K
Fastenal Company is a North American leader in the wholesale distribution of industrial and construction supplies, primarily through a network of branches and Onsite locations. The company's core business model focuses on providing a wide range of products and services to reduce customers' total cost of procurement. Fastenal has a strong market position due to its extensive in-market location coverage and ability to offer a full range of products and services. The company operates primarily in North America, with a growing presence in other international markets.
Net sales reached $3,811.3 million for the six months ended June 30, 2024, up 1.8% from $3,742.2 million in 2023. Similarly, net sales for the three months ended June 30, 2024, were $1,916.2 million, a 1.8% increase from $1,883.1 million in 2023. Growth was driven by higher unit sales, offset by pricing declines.
Gross profit margin decreased to 45.1% in the second quarter of 2024 from 45.5% in the same period of 2023. This was primarily due to unfavorable customer and product mix, and short-term supply chain inefficiencies, partially offset by favorable leverage of organizational/overhead costs.
Net income for the six months ended June 30, 2024, was $590.4 million, a 0.5% decrease from $593.1 million in 2023. Net income for the three months ended June 30, 2024, was $292.7 million, a 1.8% decrease from $298.0 million in 2023. This was driven by a decline in gross profit margin and deleveraging of SG&A expenses.