Analyst Note| Brian Bernard, CFA, CPA |
MSC Industrial Direct enjoyed strong year-over-year revenue growth during its fiscal first quarter ended Nov. 27. Sales increased nearly 10% as the company executed on its growth initiatives and end market demand improved (industrial production has expanded at a steady pace for much of 2021). In terms of the growth initiatives, MSC saw notable growth during the quarter from its industrial vending and in-plant initiatives as well as from its e-commerce platform (MSCDirect.com). We understand MSC's in-plant solution is like Fastenal's on-site program, which has enjoyed significant growth over the last few years (Fastenal's number of on-sites has more than tripled in five years). MSC management said in-plant revenue now accounts for 8% of consolidated sales.