WD-40 (WDFC) – Get Report shares soared Wednesday after the company with the iconic lubricant spray reported strong profit amid do-it-yourself projects during the coronavirus pandemic.
WD-40 shares traded at $229.82, up 16.36%, and have risen 18% year to date.
In the fiscal fourth quarter ended Aug. 31, the company posted profit of $19.7 million, or $1.42 a share, more than double the year-earlier quarter’s profit of $8.6 million, or 63 cents a share. Revenue climbed 5% to $111.6 million from $106.7 million last year.
“An unexpected developing trend we experienced in the fourth quarter was an increase in demand for products linked to renovation trends associated with the Covid-19 pandemic,” WD-40 CEO Garry Ridge said in a statement.
“It seems that the more time people spend isolated in their homes, the more time and money they spend making home improvements. We are calling this trend, ‘isolation renovation’ and in nearly all our direct markets we saw double-digit sales growth of WD-40 multi-use product due to this phenomenon,” Ridge added.
The fiscal year “brought us many unexpected challenges but it also brought many unexpected opportunities,” he said. “As a global business that sells products in more than 176 countries, each of our markets were impacted differently by the pandemic, and therefore our sales results varied greatly between geographies.”
Ridge said, “In geographies where retail operations remained open and where we were able to leverage our strong digital presence, we saw strong sales growth. However, in markets with strict movement restrictions in place or less developed e-commerce adoption, our sales were challenged.”