WD-40 Company reported fourth quarter revenue of $176.8 million, exceeding analyst expectations, while diluted EPS of $1.06 missed estimates. Results were driven by 9% growth in maintenance products, though profitability was significantly impacted by rising specialty chemical costs and increased employee incentive compensation.
Key Highlights
- Net sales for the fourth quarter rose 8% to $176.8 million, supported by double-digit volume growth in China and strong distributor performance in Latin America.
- Gross margin for the fourth quarter contracted to 52.8% from 54.7% in the prior year, falling below the long-term 55% target due to higher input costs.
- Operating income fell 32% in the quarter to $19.1 million as SG&A expenses jumped 19%, primarily reflecting higher freight costs and performance-based incentive payouts.