Fastenal, one of the biggest public distributors of industrial and safety products, had an OK year. But the company’s digital business, which includes the combined total of sales processed through ecommerce and Fastenal Managed Inventory program (FastStock, FastBin, and FastVend vending machines, which use digital technology to record transactions and reorder stock) had an even better one.
For the year ended Dec. 31, total sales for Fastenal grew 5.2% to $7.34 billion from $6.98 billion in 2022. Net earnings were $1.155 billion from $1.086 billion in the prior year.
In the fourth quarter, Fastenal, which sells products including threaded fasteners, bolts, nuts, screws, studs, and related washers, which are used in manufactured products and construction projects, as well as in the maintenance and repair of machines, posted total sales of $1.758 billion, an increase of 3.7% from sales of $1.695 billion in Q4 2022.
Fastenal ecommerce in Q4 2023
But the company’s growth engine is its digital sales base and ecommerce.
“Our digital footprint in the fourth quarter of 2023 represented 58.1% of our sales, an increase from 52.6% of sales in the fourth quarter of 2022,” the company says. “Our opportunity to grow our business will be enhanced through the continued development and expansion of our digital capabilities.”
Ecommerce grew 28.3% in the fourth quarter of 2023 and represented 24.8% of total sales.
“Our challenge … is targeting 60% sometime before we exit this year,” CEO Dan Florness said on an earnings call. “And our long-term expectation is at that 85% we talked about in the past that we believe will be part of our digital footprint.”
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Fastenal Co. report.
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