![]() Looking forward, the customer demand environment remains challenged, and our small and medium business base cautious. In the quarter, we increased total marketing investment, and we expect to continue to make further target investments in an effort to support growth and market share gains. Our position is centered on providing exceptional product and service solutions to customers, and through our leading exclusive brand assortment, strong national brand assortment, and our pricing analytics, we continue to provide significant value to customers while generating healthy gross margins.Īt the same time, we continue to make marketing investments to help increase customer acquisition and feed new business into our e-commerce and managed sales channels. With the current customer environment focused on value and price, we believe we are well-positioned for the long term. In this regard, we recently completed navigation enhancements on the product experience to enhance shopability and additional optimization efforts are ongoing. We aggressively worked to address these issues. ![]() We have identified a number of user experience changes that are increasing friction while navigating our e-commerce site. Recent e-commerce sales performance on our new web platform has been below our expectations. Our focus on the customer continues to drive our strategy, and we made further progress on operational excellence and digital transformation initiatives during the quarter. Product margin was solid and expanded each month as we moved through the quarter, reflecting a continuation of the benefit we are receiving from lower-cost inventory flowing into our cost of sales. We were very pleased with gross margin performance of 35.9%, a slight decline from sequential quarter results, but as expected, off from record results in the year-ago period. In addition, customer retention remained healthy overall, which we believe reflects the value of our one-to-one managed sales organization. We recorded strong growth from our largest accounts in the quarter. These trends have continued into the second quarter. Price was neutral in the period and volume remained muted, reflecting cautionary purchase behavior, specifically within our core, small and medium business customer base. First quarter performance reflects a continuation of the recent demand environment, with average daily sales declining 3.7%. Good afternoon everyone and thank you for joining us. This call is the property of Global Industrial Company. The press release is available on the company's website and has been filed with the SEC on a Form 8-K. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and under Risk Factors in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Today's discussion may include certain forward-looking statements. Formal remarks will be followed by a question-and-answer session. Leading today's call will be Barry Litwin, Chief Executive Officer and Tex Clark, Senior Vice President and Chief Financial Officer. Thank you, and welcome to the Global Industrial First Quarter 2023 Earnings Call. I’d now like to turn the conference over to Mike Smargiassi, Investor Relations. Please note, this event is being recorded. All participants will be in a listen-only mode. Good day! And welcome to Global Industrial Company First Quarter 2023 Earnings Conference Call. Tex Clark - Senior Vice President, Chief Financial Officer Global Industrial Company ( NYSE: GIC) Q1 2023 Earnings Conference Call 5:00 PM ET
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