Fastenal's Q2 net sales up nearly 6%
Fastenal Company reported its net sales increased $104.6, or 5.9%, in the second quarter of 2023 when compared to the second quarter of 2022. The number of business days were the same in both periods. For the month of June, net sales grew 4.7% from June 2022.
Year over year, fasteners were flat for the quarter, while safety supplies jumped almost 8%, and the "other" category of product (which includes eight smaller product categories, such as tools, janitorial supplies, and cutting tools) climbed almost 10%. Manufacturing rose over 10% and non-residential dropped almost 9% compared to the seond quarter of 2022.
On July 13, the company reported the U.S. represents 4.1% of its daily sales growth (versus 16.7% in June 2022), while Canada/Mexico represents 11.2% (versus 16.7% last year) and Rest of World comprises 3.1% (versus 1.2% in '22)).
The company said it experienced higher unit sales in the second quarter of 2023 that contributed to the increase in net sales in the period. This was primarily due to growth at our onsite locations, particularly those opened in the last two years, which more than offset lower revenues in construction and reseller end markets related to the execution of our go-to-market branch strategy. Foreign exchange negatively affected sales in the second quarter of 2023 by approximately 40 basis points.
The impact of product pricing on net sales in the second quarter of 2023 was 190 to 220 basis points compared to the second quarter of 2022. This largely reflects the impact of general inflationary conditions in the marketplace over the past twelve months and the carryover of targeted actions taken in the first quarter of 2023 to address gross margin pressure for non-fastener and non-safety products. The impact of product pricing on net sales in the second quarter of 2022 was 660 to 690 basis points.
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