Industrial and MRO parts distributor Global Industrial Company (GIC) reported its 2024 third quarter financial results on Oct. 29, showing a continued deceleration in sales growth year-over-year, while net profit continued to increase sequentially.

Port Washington, NY-based Global Industrial posted total 2Q24 sales of $342.4 million, down 3.4% year-over-year. Excluding Indoff (acquired on May 19, 2023), sales increased 0.7%. Sequentially, that comparable figure trailed 2Q’s 1.8% gain.

“Third quarter results reflect a weak demand environment and continued softness in our core small and medium business customer base,” GIC Chairman and Interim CEO Richard Leeds said in the company’s financial release. “Our strategic account business delivered another quarter of strong growth and customer retention rates remain healthy.”

Leeds became interim chairman on Aug. 9 following the departure of former CEO Barry Litwin.

The company’s 3Q24 gross margin of 34% increased 120 basis points year-over-year but was down from 2Q’s 35.2%. Excluding Indoff, the comparable gross margin of 36.1% improved 80 bps year-over-year.

Global Industrial’s 3Q24 operating profit of $22.2 million on margin of 6.5% fell from the $28.2 million and 8% margin of the year prior and $26 million/7.6% in 2Q. Excluding Indoff, 3Q operating profit of $61 million was down 14,7% year-over-year.

The company’s 3Q24 net profit of $116.3 million was identical to a year earlier but topped 2Q’s $20 million.

“We are disappointed with recent results and have identified key areas for improvement,” Leeds added. “We are addressing this through a renewed focus on engaging and serving core customers, better communicating our value proposition to the market, and playing to our competitive strengths. As our efforts gain traction over the next few quarters, and the market environment improves, we will be in a stronger position to enhance our performance.”

Global Industrial was No. 26 on MDM’s Top Distributors List for Industrial Supplies and No. 10 for MRO.