WD-40 shares fall after costs weighed on fourth quarter earnings

By Robert Barba

Shares of WD-40 Co. fell 8.8% in after-hours trading on Tuesday after the industrials company reported higher costs of goods and expenses in the most recent quarter.

Earnings per share were 61 cents on revenue of $ 115.2 million, compared to $ 1.42 a year earlier on revenue of $ 111.6 million.

Its cost of goods sold was $ 56.2 million in the fiscal fourth quarter, down from $ 48.8 million a year earlier. Its gross margin stood at 51.2% against 56.3% a year earlier.

Operating expenses totaled $ 46.6 million, compared to $ 38.3 million a year earlier. The company recorded strong increases in selling, general and administrative expenses, as well as in advertising and sales promotion expenses.

“In the fourth quarter, we made the thoughtful and deliberate decision to invest significantly in the sales momentum we are experiencing and to increase our investments in brand awareness and market penetration,” said the president -General Manager Garry Ridge in prepared remarks. “While this decision negatively impacted our fourth quarter net income, we believe investments in these key strategic areas will lead to strong top line growth going forward.”

For its 2022 fiscal year, the company expects net sales of between $ 522 million and $ 542 million and earnings per share of between $ 5.24 and $ 5.38.

Shares of the company closed at $ 229.29 on Tuesday, up 0.1%. Shares are down 14% this year.

Write to Robert Barba at [email protected]

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