MSC Industrial Supply reported fiscal third-quarter net sales of $1.047 billion, a 7.8% year-over-year increase driven primarily by pricing execution, with price contributing 720 basis points and volumes adding 50 basis points. Adjusted operating margin expanded 160 basis points to 10.6%, and adjusted diluted EPS rose 32% to $1.43. Core customer daily sales grew approximately 8%, national accounts improved to about 7%, and public sector sales rose roughly 8%. The company completed its sales force optimization, reducing total headcount by 360 year-over-year, including 225 fewer field sales positions, which helped lower adjusted operating expenses by 150 basis points as a percentage of sales. CEO Martina McIsaac said the industrial recovery is in the 'third inning,' with volume trends turning positive in April and continuing through June, and the company guided for fourth-quarter average daily sales growth of 6.5% to 8.5% and an adjusted operating margin midpoint of 10.4%.
MSC Industrial Direct Company IncSales growth driven by pricing execution, with price contributing 720 bps; margins expanded.