Fastenal's October Shows Core Demand Continues to Accelerate
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Strong daily sales growth outpaced September from both manufacturing and non-residential construction customers.

Fastenal reported its October sales results on Nov. 4, showing ever-more that the company's core product demand and product mix appear to be back to their healthy pre-pandemic levels.

The Winona, MN-based company posted total October sales of $531.7 million, up 8.9 percent year-over-year, with daily sales up 14.1 percent as October 2020 had an additional selling day. Sequentially, sales were nearly identical to September.

By product line in October:

--Daily sales of fasteners grew 23.2 percent year-over-year, outpacing September's growth of 19.4 percent and a complete reversal of a 4.7 percent decline a year earlier

--Daily sales of safety products improved 2.9 percent year-over-year, outpacing September's 0.7 percent and a fraction of the 32.0 percent surge seen a year earlier

--Daily sales of all other products grew 12.3 percent year-over-year, outpacing September's 9.9 percent and dwarfing the 0.8 percent growth of a year earlier.

By end market in October:

--Daily sales to manufacturing customers grew 22.9 percent year-over-year, outpacing September's 20.1 percent (-0.1% a year earlier)

--Daily sales to non-residential construction customers grew 14.2 percent, outpacing September's 11.7 percent (-9.9% a year earlier)

By geography in October

--Daily sales in the United States grew 13.0 percent year-over-year, outpacing September's 9.7 percent (+3.0% a year earlier)

--Daily sales in Canada/Mexico grew 20.0 percent, outpacing September's 16.0 percent (+6.8% a year earlier)

--Daily sales to the rest of international grew 21.9 percent, down from September's 27.9 percent (+30.7% a year earlier)

By customer/channel type in October

--Daily sales in national accounts grew 18.0 percent, outpacing September's 17.0 percent (+6.0% a year earlier)

--Daily sales in non-national accounts grew 8.0 percent, outpacing September's 4.0 percent (+3.0% a year earlier)

--75.0 percent of Fastenal's top 100 national accounts grew in October, down from 82.0 percent in September (37.0% a year earlier)

--72.3 percent of Fastenal's public branches grew in October, outpacing the 69.8 percent of September (49.5% a year earlier)

Headcount

--Fastenal ended October with a total headcount of 20,368, down 137 from September and up 0.4 percent year-over-year

--Fastenal ended October with 13,389 total selling personnel, up 1.8 percent from September and up 2.1 percent year-over-year

The October results follow Fastenal's 2021 Q3 earnings report issued Oct. 12, when the company showed that sales of $1.55 billion for the July-September period were up 10.0 percent year-over-year and up 3.1 from Q2. Fastenal's Q3 gross profit improved 12.4 percent year-over-year, operating profit of $318 million improved 9.8 percent and net profit of $244 million likewise improved 9.9 percent.

Source: Industrial Distribution
2021-11-09

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