Plumbing supply and industrial distribution giant Ferguson on Tuesday posted a slight increase in sales in its fiscal first quarter as its earnings, profits and margins all slipped compared to the same period last year.
Ferguson officials, however, said that the new fiscal year began “largely as expected” amid “continued market headwinds and commodity price deflation.” The company maintained its initial forecast for FY2025 as a whole.
Ferguson — which shifted its headquarters from England to Virginia as part of a recent restructuring — reported nearly $7.8 billion in net sales in the three months ending Oct. 31, up 0.8% compared to its previous first quarter.
Operating profit fell 10% from $739 million in the previous Q1 to $665 million in the latest period. Gross margin and operating margin also fell year-over-year, from 30.2% to 30.1% and 9.6% to 8.6%, respectively. Earnings declined from $2.54 per diluted share to $2.34.
The company indicated that it continues to project full-year net sales growth in the low-single digits with an adjusted operating margin between 9% and 9.5% for the year.
“While we anticipate an ongoing challenging near term market environment, we will continue to invest in scale and capabilities to take advantage of multi-year structural tailwinds such as under-built and aging U.S. housing, non-residential large capital projects and our opportunity with the plumbing and HVAC specialized professional,” Ferguson CEO Kevin Murphy said in the company’s earnings release.
