MSC Industrial Supply Co. is betting big on digital upgrades and service-driven selling to spur growth in a sluggish industrial economy, as the company reported flat Q3 sales and signaled momentum in its ecommerce and high-touch programs.

For its fiscal Q3 ending June 1, MSC Industrial reported sales of $971 million, down 0.8% from $979 million in the same quarter last year. Year-to-date sales reached $2.89 billion, a 2.2% increase over $2.83 billion for the same period in fiscal 2024.

While year-over-year growth was modest, sequential trends improved. Average daily sales rose 7% from the previous quarter, helped by stronger performance in May and June after a softer April tied to tariff-related uncertainty.

“Our third-quarter performance shows early progress in the execution of our strategy,” president and CEO Erik Gershwind told analysts on the company’s earnings call. “We’re seeing encouraging results from our digital enhancements, and momentum is building in our high-touch solutions.”

MSC Industrial ecommerce sales in Q3

MSC Industrial’s digital strategy showed signs of traction. Website traffic and conversion rates rose following recent upgrades to its ecommerce platform. Direct traffic to MSCDirect.com increased by double digits year-over-year and by mid-single digits compared to the second quarter. The improvements focused on product search, buying personalization, and overall site usability, according to MSC Industrial.

“These upgrades are making it faster and easier for customers to do business with us,” Gershwind said. “We’ve improved the buying journey and personalized the experience to better meet specific customer needs.”

Chief revenue officer Martina McIsaac said the return on digital product marketing spend rose about 20% from the previous quarter.

“We’re seeing strong early signs that our marketing and sales optimization efforts are resonating,” she said. “Conversion and engagement metrics are both up.”

Meanwhile, MSC Industrial expanded its high-touch offerings. Vending machine installations increased 9% year over year to more than 28,700, and In-Plant programs grew 23% to 399 facilities. Together, these services now account for 19% of total company sales.

“Customers are looking for partners who can help them reduce cost and drive efficiency,” McIsaac said. “Our solutions are designed to do just that — and we’re expanding our footprint where it counts.”

Sales to customers using In-Plant programs rose 10%, while vending-related sales climbed 8% from a year earlier. Public sector sales were up 2.4%, and original equipment manufacturers (OEM) product lines posted modest gains.

MSC Industrial makes leadership changes, addresses tariffs

MSC also made a leadership move to accelerate its digital roadmap, naming John Reichelt as chief information officer during the quarter. Gershwind called the hire “critical to advancing the company’s digital transformation.”

“John brings deep experience in operational systems and customer experience,” Gershwind said. “He’ll be a key player in driving our digital core initiative and improving supply chain capabilities.”

Tariff concerns created headwinds in April, with Gershwind noting a “temporary pause in activity” as customers reassessed sourcing strategies. But demand rebounded in the final two months of the quarter, helped in part by MSC Industrial’s cost-savings consultations and promotion of its Made in USA product offerings.

Looking ahead, MSC Industrial expects average daily sales in Q4 to range from down 0.5% to up 1.5% year-over-year.

Despite a muted outlook for manufacturing, including softness in automotive and fabricated metals — MSC Industrial raised its full-year free cash flow conversion forecast to 120%, up from its prior estimate of 100%.

“While macro conditions remain challenging, we’re staying the course,” Gershwind said. “We’re executing our plan and investing in the areas that will define our long-term success — digital, customer productivity, and operational efficiency.”

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s article on MSC Industrial ecommerce sales.