Respondents to ASA monthly sales report survey reported a median sales increase of 14% for September 2022 vs. 2021.
Though September 2022 results reflect another month of solid performance compared to the same month a year ago, it is only the second month of 2022 to report less than 15% growth vs. the prior year.
Median calendar year-to-date sales growth of 19% was reported by respondents. For the trailing 12 months (TTM) ending September 2022, respondents again reported strong sales growth of 20%.
Industry Insights, which produces the ASA monthly sales report for ASA distributor members, says that given the current high inflationary environment, the year‐over‐year comparisons should be viewed with caution.
For instance, on a month-to-month basis, respondents reported a decline in sales of -8% for September 2022 vs. August 2022.
Nonetheless, it is encouraging, Industry Insights noted, that half the respondents reported TTM sales growth between 13.1% to 25.9%.
Inventory jumped 23% for September 2022 vs. September 2021. The median three‐months average days sales outstanding improved a day from 42 days for August to 41 days in September
“While September was another strong month with double-digit sales growth (14%), this is only the second month of 2022 that respondents reported sales growth less than 15% year-over-year,” Industry Insights Senior Vice President Greg Manns said. “Additionally, September sales declined (-8%) vs. August. The inflationary pressures are squeezing gross margins, with more than 60% of respondents reporting lower gross margin percentages vs. the prior year. After stronger than expected employment figures and increases in core inflation for September, it raises the likelihood the Fed will hike rates again in November in a continued attempt to slow the economy. This has economists putting the probability of a recession in the next 12 months at 63%, according to The Wall Street Journal’s Economic Forecasting Survey.”
What ASA distributor members are saying:
Some comments from ASA member distributors that participated in the monthly sales report:
- “Best 9-month results in our company's history!!”
- “Business remains strong. We came up against an impossible comp from last September due to a hurricane that hit the northeast last September.”
To access the full ASA monthly sales report and to access archived reports, log into your MyASA account at www.asa.net/myasa.
