Fastenal Co. reported fastener daily sales increased 24.6% to $584.5 million (34.3% of net sales) in the first quarter of 2022, boosted by 25.2% growth in March. Fasteners represented 32.5% of net sales in the first quarter of 2021. 

Safety product daily sales increased 15.3% and represented 21% of net sales. Safety products represented 21.5% of net sales in the first quarter of 2021. 

Other products daily sales increased 14.8% and represented 44.7% of net sales in Q1. Other products represented 46% of net sales in the first quarter of 2021.

Q1 net sales increased 20.3% to $1.7 billion, with gross profit, as a percentage of net sales, gaining 120 basis points to 46.6%. Operating income grew 27.7% to $358 million, while net earnings rose 28% to $269.6 million.

Daily sales through eCommerce grew 55.6% in Q1, with revenues attributable to eCommerce totaling $274.4 million (16.1% of total revenues).

Fastenal’s “digital footprint” accounted for nearly half of its overall revenue, rising to $800.9 million (47% of sales).

During Q1, Fastenal signed 106 new Onsite locations (defined as dedicated sales and service provided from within, or in close proximity to, the customer’s facility), up 12.1% to 1,440 active sites.

“Supply chains and labor markets remain tight,” stated CEO Dan Florness. 

“However, conditions have stabilized, and our customers are better able to plan and navigate around the challenges.”

The company indicated “product costs are stable at high levels, with a few exceptions: nickel, a key input for stainless steel fasteners (3.3% of 2021 sales), fuel/energy (1.1% of 2021 sales), and overseas shipping (1.7% of 2021 sales).” 

Manufacturing lead times continue to lengthen, but shipping lead times are declining. Web: Fastenal.com