you thank today Thank these joining and us John. Good morning, during unprecedented everybody times. for you,
for all doubt wishes of begin dealing sharing start mind get of by families the an we me and safe now, so with with and is to COVID-XX no my how to me issue. right you top you Let before healthy. are your this expressing best into by let we of stay to quarter, us overview
We've to the of effort period continuity navigate company-wide launched help this through business uncertainty. a business us
imagine, are just now plan likely for constant our full stakeholders, communication As team's contingency associates, is attention extended our we the you right our economy. be and getting suppliers leadership to disruption to in can our an our customers, we as what with
their priority one our of and is associates and partners. customers number our Our the safety families, our other health and
home, who are in associates our from can corporate so do particularly working functions. So those
essential continue centers business, we be to operate As so are an our we to those centers distribution associates customers. our fulfillment serving are on-premises continuing or customer
shipping with we frontlines the This facilities. instituted battle outbreak. timely of while some cleanings equipment We've including to health safety frequent creative this is particularly running and important of and helping to nation's keep our of protective our are additional and safety enhanced the use procedures we sourcing, the because team, all safeguard
we do our Given to many services plans centers. have response frontlines time COVID-XX, not the the to we on that shutdown of essential to any fulfillment providing this at organizations are customer
we are we with operating the and contact health them of follow close across footprint. of However, will, guidance in officials our course,
in travel eliminated order We health have essentially all safety. ensure and to
spending only reducing across operating moving also ahead company, the capital more critical. that is broadly deemed are We on spending and
including more. cut resources, hiring, ceased like all expenses items on consulting have outside We and
it deteriorates well-developed we further may. contingency Looking here the if as well costs very from ahead, reduce to have plans situation
have am how our I of proud up this time during stepped of uncertainty. associates unprecedented
day. associates the Our out product getting warehouse continue every door
with frontlines the on remain the teams service company and sales of Our face our customers. the
moved in going. is team coming customers entire And that scarce to team are access. nearly speed safety find to and management janitorial work keeping products has enable our remote up category Our company miracles our the with with IT
turn more in call, the some our share now closed but I'll fiscal later detail February. end will second actions our at quarter to the We of on that we
to MSC on the that we on We as our continued the During manufacturing critical three focus industrial the partner operating over mission supplier reposition expansion. plan, to effectiveness of journey expenses. a the of couple are and programs remained on of progress plant quarter, discussed by we've calls, operating ultimately customers. initiatives and profitability those the margin and improving last the our sales to stability restore improving productivity And refining reducing floor
fiscal roughly refining continued was quarter. we force growth. during sales our second the preparing flat and Sales headcount First, to accelerate
though, or increased that we've CCSG business areas priorities. of and investment other talked into about roles the in couple growth Importantly, such development as headcount we the hunter a
wins on business continued and remained a new strong pace plan. at Our
While encouraging, gap that be will realized the market. measure we our ultimate growth above
our as Our on track. improving second in do however, back COVID-XX mute and of ripple hence, million resulting fiscal benefit near-term equally remains our the program and overall roughly We and $XX improvements, levels our annualized about in supplier we've initiative negotiated Recall payouts, of The is rebate between XXXX. expect, the the fiscal purchase profitability XXXX down. of the programs. that split the could half economic that some profit come
to and The reduce fiscal XXXX is our third improve initiative expenses realigning model operating productivity.
with end and for offering others. intensity some up at some of our the early ratcheting fiscal associates this voluntary management performance retirement to that recall XXXX You'll of began
was We also positions selectively where eliminated our changing. focus
that began roles, in continued as and we our fiscal selectively certain quarter of second customer-facing All hiring mentioned. I into
a ratio. the of points basis OpEx by we our model sales to align path also hypothesis productivity, additional the to operating to We opportunities the our improved as exercise hundred measured That and assessment new of strategy. that to our couple continued see confirmed
as until could identified required and meetings, they on you travel down. the initiatives of team so Many settle pause imagine, are things
improvements speak. other moving are we indirect are some as such there However, savings and procurement initiatives contract forward as that
led Our transformation being Kari by effort is Heerdt.
right quarter. review interim doing CFO, We'll then in environment been a his to out it Greg quarter the caution, that staying to then fiscal an now as the home, turn I'll over wrap the open job to and our now expected. under would second turning of he our note things and up John abundance providing team great and results have Clark, questions. of details an of is I before on for up financial weather and update the finance
Our expenses quarter this gross than margin midpoint, fiscal it. second gross with in was results to sales the mentioned came the operating guidance our and execution share and of of of guidance our our margins guidance also told, the our despite ranges $X acceleration below reflected review environment. midpoint uncertain related above operating while All the better margin Both was range. per Operating were solid of fees within in consulting and sales at falling both an that the I came earnings extra roughly earlier. million an midpoint model
Turning us. start We not which MBI environment. demand no and to of XX.X of the points data overall the but one to the the readings a erased surprise to March reading February Industrial by was, did COVID-XX couple did encouraging of with unfolded remained with relatively saw improving doubt trends course, for quickly see soft. quarter January you outbreak, this XX.X, and
and softness industrial COVID-XX. terms pockets the in Aerospace In in developments and oil has gas, in with weakened brought heavy and end weakness truck, to building demand markets, concerns areas agriculture. the also of around due of like automotive, the Boeing further
environment, from price been suppliers increase our pricing the continue With regard a we March. midyear list and quarter our beginning fiscal has we at the good. beginning took the to quite of of third movements to price see or Realization
the seen past we've In over good several as fact, anything as years.
customers levels weighed feels remained Turning so to to our the To though, National of by down the in which digits in teens, the while this spot down most ancient mid-single portion to like metalworking, customer honest, levered core sales deteriorated of heavily bright declined accounts in CCSG low-single performance and overall declined the digits, type. our history. is no low all business be that the low-single Government surprise. growth growing digits. growth. the
I'll we acceleration since is more what because are of COVID-XX. fiscal March reflective it March, now turn seeing to the of our
few overall, March’s note trends there sales are our a surface. While at in the negative estimate to came X.X% important fiscal under
the a prior customer there. low-single April, three of given were runs two. drop from across the accelerated last two our nation. there's saw big I'll And and the last a between April. last and revenues This Through the rapidly over three shutdowns actually then into began our shutdowns days big the up remind weeks spread first the weeks three auto as calendar discrepancy just We that of runs so First, included March in you first big year. off with digits the three week weeks, fiscal
substantial weeks. Once over and sales and other with prior line the sales customers. we note drop a saw janitorial At two big a not the The particularly control surprisingly products through again, is surged I'd Large to surprising efforts second declines product the our point given performance. and same worldwide neither with COVID-XX. time, that lines month safety last in of orders government shutdowns discrepancy in saw the year, double-digit product is
times. gap our these calls, not bookings I'll Third revenues, an or these unusually and Normally we but between discuss normal what only thing note, we saw are we big orders invoiced. on
Our orders year. prior were the bookings digits over or March for high-single up
of year, last bookings prior In March. weeks fiscal fact, the our were our during two over up even
to where during to of in June, longer growth year. we to The April, majority large bookings We offer us This surge bookings versus yet in that in supplier backlog gap and invoice scarcity would function softness of lead come. a bookings additional May, some large the prior to unusually any times began be orders, is anticipate revenues janitorial tailwind months growth a of our and a in warehouses. safety the larger-than-normal and February gap the may that revenues of in actually buffer of bookings also over which these saw own product,
back and I'll come now over concluding to John I'll then things some turn remarks. with
