Ecommerce surges 28% at a large HVAC distributor
The second quarter was another good quarter for Watsco Inc., a distributor of heating, ventilation and air conditioning (HVAC) equipment.
E-commerce is an important contributor because it is so efficient.
Albert Nahmad, Chairman and CEO
In the second quarter ended June 30, the Miami-based company posted total revenues of $1.85 billion, up 37% from $1.36 billion in the second quarter of 2020. Net income was $172. 1 million compared to net income of $104.2 million in the second quarter. quarter of 2020.
While Watsco didn’t break any year-over-year stats, the company says e-commerce grew 28% year-over-year in the second quarter and digital commerce sales are on track to exceed $1.7 billion by 2021. to amount. If Watsco reaches that number, e-commerce sales would rise 11.1% from $1.53 billion in 2020, based on a projection from Digital Commerce 360.
The company is well on its way to reaching new heights in e-commerce sales, executives said this week.
E-commerce accounted for “nearly $1 billion” for the first half, executive vice president Barry Logan said during a Q2 conference call with investment analysts this week, according to a transcript of Seeking Alpha. Logan noted that Watsco’s ecommerce sales were “about $1.8 billion in the past 12 months,” and he estimated ecommerce sales were “close to $1 billion” for the six months ended June 30.
E-commerce is ‘about a third of our turnover’
“That’s now about a third of our revenue,” Albert Nahmad, chairman and CEO, added in the earnings call.
Nahmad also noted that e-commerce was a major contributor to Watsco’s overall performance. “E-commerce is a major contributor because it’s so efficient,” he said.
He also attributes Watsco’s growth to the company’s continued investments. “Our results reflect continued investments in products, technology and people to drive sales and innovation across our company,” he says.
Watsco, which invests heavily in its e-commerce sales channel, has also published several other digital metrics, including:
- Mobile app users grew 12% year-on-year to more than 25,000 users in Q2.
- The total number of online orders grew by 22% in the second quarter to more than 400,000.
- Watsco’s product information management system (PIM) includes approximately 900,000 SKUs used by more than 350,000 contractors and engineers.
“Our teams remain focused on providing an exceptional customer experience, as evidenced by the continued growth in customer adoption of our leading technologies,” said Nahmad.
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