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 $7,546.0 million, a 2.7% increase from $7,346.7 million in the prior year, attributed to market share gains despite a challenging economic environment. Daily sales increased by 1.9% YoY.
Gross profit margin decreased to 45.1% from 45.7% in the prior year, primarily due to a higher proportion of sales from national accounts and Onsite customers, as well as non-fastener products, which typically have lower margins. The company also faced product margin pressure.
Net income decreased slightly to $1,150.6 million from $1,155.0 million in the prior year, primarily due to a lower operating margin. Diluted net income per share decreased by 0.6% to $2.00.