Fastenal Co. reported fastener daily sales grew 28.4% to $503.6 million (33.6% of net sales) in the second quarter of 2021, driven by higher manufacturing and construction demand.

Fasteners represented 26% and 34.5% of net sales in the second quarter of 2020 and the second quarter of 2019, respectively. 

Net sales decreased 0.1% to $1.5 billion in Q2 as PPE and sanitation products sales plummeted.

The overall impact of product pricing on net sales in the second quarter of 2021 was 80 to 110 basis points. 

“We continue to experience pressure related to product and transportation cost inflation,” the company announced. “Pricing actions taken in the first and second quarters of 2021 contributed to the increase in the impact of net pricing on sales in the second quarter of 2021.”

Gross profit as a percentage of net sales increased 200 basis points to 46.5% in Q2 as product and customer mix favorably impacted gross profit percentage as a result of the sharp increase in the mix of fastener sales and sharp decrease in non-fastener sales.

Operating income as a percentage of net sales increased to 21.1% due to a 200 basis point increase in gross profit, partly offset by an increase in operating and administrative expenses.

Employee-related expenses, which represent approximately 70% of total operating and administrative expenses, increased 11.5% in Q2 due to higher incentive compensation as improved business activity lifted branch growth and profitability, as well as a 25.1% increase in health insurance costs as employees and their families were more comfortable seeking health and dental care. Web: Fastenal.com