MSC Industrial Supply Co. reported a second straight quarter of declining sales and earnings, but the company remains focused on long-term growth through digital upgrades, ecommerce investment, and supply chain flexibility in response to shifting tariff policies.
For its fiscal Q2 ended March 1, MSC Industrial’s sales dropped 4.7% year over year to $891.7 million. Net income fell 36.4% to $39.3 million.
But while demand across heavy manufacturing sectors remained weak, MSC Industrial executives emphasized progress in areas they can control — especially digital transformation. The company rolled out significant upgrades to its website late in the quarter, focused on improving product search, checkout simplicity, and overall user experience.
CEO Erik Gershwind said the company designed the improvements to reflect its technical expertise while making online shopping faster and more personalized. A new one-page checkout process cut the number of clicks in half, and a revamped product comparison tool made it easier for customers to make decisions.
“We’re seeing early signs of success,” Gershwind said. “Website traffic, new customer acquisition, and online sales KPIs are all moving in the right direction.”
MSC Industrial ecommerce sales and tariff response
Ecommerce makes up about half of MSC Industrial’s online revenue. It showed softness in late December and early January, but it improved as the quarter progressed. MSC Industrial said it expects continued marketing investments and increased automation in sales and customer care to strengthen digital growth in coming quarters.
Meanwhile, MSC Industrial is bracing for rising tariff pressure. The company has about 10% of its cost of goods tied to China but is often not the importer of record. Still, it issued a small price increase in March for impacted products and is collaborating closely with suppliers to evaluate broader cost impacts from newly proposed U.S. tariffs.
President and chief operating officer Martina McIsaac emphasized that MSC Industrial’s diversified sourcing, including over 200,000 “Made in USA” products, gives the company an edge.
“We’re well-prepared to help customers navigate uncertainty,” she said. “We have the right products, pricing flexibility, and productivity tools in place.”
The company also continued expanding its high-touch solutions like vending machines and in-plant programs, with installations growing year-over year. Although growth from these programs was modest due to soft demand, MSC Industrial sees them as highly scalable once the market rebounds.
Executives remain cautious about the near-term, expecting third-quarter sales to be flat to down 2%. But they’re optimistic about the second half of the year, particularly as upgrades in digital channels and customer outreach begin to gain traction.
“In a tough environment, we’re doing what we said we’d do,” Gershwind said. “And that positions us well for when industrial demand picks up again.”
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