- Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to the Q1 2023 Brady Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Ann Thornton, Chief Accounting Officer. Please go ahead.

Ann Thornton

you. Thank welcome call. Corporation and quarter XXXX the conference earnings to morning fiscal Brady first Good for morning’s slides www.bradycorp.com/investors. The this website on at our call are located

information will forecast about and words statement. forward-looking #X. subject Words risk such examples on is this We impact may teleconference SEC factors of the news will, identifying we are expected Risk information. prepared copyrighted is It’s may, just expect, note be factors XX-K, that in uncertainties, not morning Brady’s Form few believe, call, Corporation comments forward-looking the without note rebroadcast this with that this anticipate various important during filed Slide in Brady. make may as our our by begin Brady and a in forward-looking Please September. consent to results. to which which remarks a could was of XXXX fiscal Also, significantly were please and release and that noted note

recording be broadcasting Internet. this and will We the it on call

Russell? participation As and being the Q&A to constitute consent now your will Russell I recorded. over the such, Officer, Shaller. Executive to Brady’s call in Chief session President will your turn

Russell Shaller

good today. a sales Thank was growth sales which total first organic we X.X%. you for you, all of of This with resulting Overall, by offset marked ultimately across growth fiscal quarter foreign this of another all Ann of by Much businesses. organic our morning, had currency our growth in X.X%. translation, quarter quarter joining and released was us we results, thank XXXX financial solid execution

share together in And how effort control of profitability, to control More precisely our expanding in XX.X%. team once led the improved delivering while digital both organic relates we starting our and macro that it our did, environment, see our all investing of the as proud earnings to environment, we offset macro while We can’t I capabilities. we worked changes. the cost entire and sales can some shareholders. per through our headwinds. sales GAAP specifically, Although we strong currency is this improving Brady to which growth for R&D, am customers what again to currency are we translation, can an structure force challenging our and control

For hiring remains but is improving, instance, still somewhat challenging.

has qualified we improving. seeing we that past. is most the in had challenging than supply we International to are the are and chain We rates moderated open quicker need the up that more critical our manner. we certain the still customer have candidates for positions are in products demands. filling the and to source supply loosened shipping our are point chain to meet a But part, cost where effective are getting parts There

yet positive reduce signs these have inflation. into However, translated not

currencies energy increased regions relation of U.S. costs, experiencing to and rates are North We margins the in which dollar, weaker in outside wage increased are America. squeezing

are a continues we environment economic serving products. our great there demand to solid customers. team job a experience While our And of Brady’s continue to number for do uncertainties,

constraints chain to that our effectively have customers. ensure marketplace supply could managed in these we We disruptions serve

expensive inventory increased and in see levels. been supply you which made lead it’s periods, However, can have more pre-pandemic versus our chains elongated times

our we sales with of get of macro calendar I the their need ensure a can force. many our sheet priorities the remain Even see that the of data Brady’s softer the for patterns on can’t you view these are needs of am and clear. done. our balance well Our currently they to gives suppliers what flexibility what based macroeconomic jobs future formed withstand as order meet by remain to holds. as we from products customers us you robust, type our the that is I tell XXXX. My events though hearing future them the customers, prepared the Brady and supplying

evolution and is company. growing faster continue our into a to First foremost

improve a tailwind our believe, years initiatives ensure we to for to capabilities area us Second is customers’ our to automation which come. give an will is that

take this encompasses and shareholder returning our while shareholders. on deploying inflationary of supporting with value, necessary finally, long-term our to stakeholders reinforce we the our to best all And demands all operating ensuring to to actions of or are offset capital to providing investments, employers, service. from customer organic approach ESG it view, communities, is of our Fourth to be in to our meeting funds acquisitions, drive that possible are Third we culture impacts the customers, Brady’s is long-term and of to our our the focused and course, order shareholders. a environment, which sustainably, our

We are of position strength. in a

Our important customer printer relationships. of have we highly on the our printers and and this the lineup Brady, is incredibly for printers is a Placing marketplace purchases innovative results in way. repeat deepens strong in pipeline as

in future. continuing are investments make to We our

turn solutions workplace balance sheet. we a our team our at I delivering provide on business. to that day. now solid more single rock a Aaron? And about over call I financial results then to have commentary Aaron business We to details have the more every will Brady and for is fantastic specific our safety our will customers identification return provide

Aaron Pearce

everyone. you, Russell good morning Thank and

reduced market segment line shares. of pullbacks was in sales the once while by reported of IDS in segment as growth. year. of WPS $X.XX grew percent And profit We which calculated the last by organic of EPS $X.XX And $X.XX profit year. non-GAAP EPS it EPS GAAP GAAP amortization impact X.X%, the to as compared is compared quarter. Putting of grew grew first less quarter performed well. of we Each this expense SG&A divisions first quarter $X.XX another QX quarter, nicely. took two we and last of this our a to our after-tax altogether, our expense again we quarter XXX,XXX XXX% recent This by advantage sales had strong bottom we repurchasing

to organic takeaways financial strong divisions, two returning our continued shareholders. improved are key sales each solid our the EPS, growth, commitment nicely quarter funds this in a performance of to and So

the substantial which helped and appreciation very strong of another us quarter. All U.S. the deliver dollar of overcome

Let’s Organic move outsized sales with in sales currency for the this XX% IDS stronger of profit #X, two challenge, WPS dollar, currency quarter. WPS quarterly our reduced Slide each reduced sales trending. X.X%, total with of our reduced trends. by Slide On X.X% currency U.S. impact in XX.X%. foreign sales total reason to sales translation because The Australia. is currency grew #X WPS WPS X.X%. approximately of are well foreign impact of gross margin and foreign business thus to in significant Europe performed but WPS Even sales by extremely bringing and will segments, see for our our company The Western are another the the by on sales still foreign you half this sales growth

Our XX.X% year. basis points margin gross quarter in of profit decreased XX.X% compared last XX to to the first

on gross basis, at input to able of profit Looking were all our offset year-over-year we cost margin nearly a increases.

energy are inflationary margin. sequential of labor seeing everything material price improving, are experience drivers different continue However, reduced are sequentially increases continue our input a across one cost scarce of and running to costs increases, the costs pressures profit to we many we in geographies. though raw still conditions Even which was in between. certain categories, And cost from gross still above

some with quite bit experiencing partially be availability haven’t we product getting still translate we inflation inflation, are price into input increases seem price markets people a seen are Although to And even availability, to cost better offsetting lags and though respect increases. it and reduced yet. increases between

continue to to margins in a we our As next see of choppiness quarters. expect such, over gross the would profit bit several

our trending. compared you’ll was $XX.X of million SG&A realized This Slide X.X% expense this to we pricing. approximately On in SG&A growth million quarter, last first year. from quarter sales the $XX.X quarter #X, find

this first of quarter SG&A As last to year. a compared of percent in XX.X% sales, the quarter was XX.X%

If you sales QX this to declined then would have last sales year XX.X% of expense, quarter. XX.X% exclude of from in amortization of SG&A

efficient to investments research expense, #X costs, reduced SG&A reduction a and benefited based to continual focus a healthcare of development. on our from addition the and incentive compensation expense becoming SG&A Slide translation. expense currency our In trending reduced also foreign in more is due organization, in

scanners in invested to development as steady out our R&D, building we sales. product critical our opportunities and businesses, which is remain a stream launches to of product quarter, million committed platform RFID newest to that including equates new across track-and-trace A about and of our printers printers, $XX.X see scanners. we barcode Accordingly, materials, X.X% lines high-quality the industrial of encompasses our new comprehensive This we strategy. growth of

you #X, on spend R&D see spend On basis. the in expect GAAP than reduction timing to in compensation. Slide incentive-based XX.X% less quarter’s was would increased a future pre-tax to that due quarters project bit we a and of This earnings a can

incentive-based then this can two our you #X trend chain EPS record our this you basis. both the pre-tax now non-GAAP can sales to once both have start #XX, compensation QX When $XX.X Slide up a increased EPS amortization summary have year the our volumes good earnings and supply to flow the you payments from a from as increased of in the year, and Slide we after-tax customers of cash consecutive on that current look challenges. support again of our increasing to quarter an year charts, support of $XX as despite Operating we well our into of XX.X%, years that would of exclude million timing accelerating annual million these inventories of increased off right shows increasing the we further in the see trending first If expense last to cash quarter. earnings event ensure into are this generation. On at by the quarter and had year. you find will general as and the prior

approximately second expect to comp, made incentive-based first than year, second we we to annual year, made $XX last relates quarter this generation stronger we it payments cash year. these quarter, last were quite we be the in the As in experienced quarter. whereas payments our a what which Accordingly, million our bit

a buybacks XX, Now in Slide cash or over our see can turn still to the that had our net last inventories October position on if up balance $XX.X year share the Brady’s were Even you impact generation of building million. and #XX, on cash has you stepping we so, after historical up sheet. will

Our we will we focus second, continue economic on enhanced our in and capital CapEx. growth dividends. especially we organic and foremost to efficiency new in approach includes to capital capability and This resources, automation generating sales enhancing development, first expenditures, investing use drive and our where increasing tailwinds. to deploy product opportunities. consistently businesses, the fully And growth, cash expect focused Despite productivity sales secular to allocation uncertainty, is sales fund to capital from our

We dividends a have our opportunities have going capital or funding dividends, we disciplined investments buybacks for synergistic for Brady’s in manner a organic value After trading Brady’s between clear year highly disconnect price. since deploy every fully where and a increased then manner either single we intrinsic opportunistic when see and our public. we in acquisitions

sheet execute us balance including enhancing investing completing well our enviable returning to positions acquisitions, R&D, and to shareholders. Our value in funds additional activities,

future, on put are to look strengthening us is success. exchange set taken U.S. we October ending can’t the provided of approximately of the macro year a headwind To as economy a course, to reduce we the of fiscal ago, XX, to it’s X%. when As have up X.X% for fiscal sales expected few that confident can’t currency ‘XX foreign foreign headwind full But approximately Based our we control just months July a of XX, dollar we rates. control initial in guidance, for we the currency we rates and full the increased and now actions XXXX. by expected we X% year our this of the perspective,

full established our reduce Even fiscal a fiscal basis. currency articulated to exchange As is EPS increased Slide to to per fiscal approximately year ‘XX per of foreign EPS by rates. our deck. $X.XX guidance ‘XX currency of which $X.XX share This are per to the last and share foreign share range $X.XX $X.XX XX us when it GAAP $X.XX the year’s XXXX to we guidance basis foreign with EPS, of headwinds, relates impact maintaining to is previously non-GAAP our on currency these on a on compared brings expected

is continued based October expect we and XX rates outlook exchange Our economic expansion. on

concern that hearing acknowledge positive and over a we we uncertain future, have slowdown seen are not we and have conditions certainly we continue feeling market meaningful increased While momentum. our remain yet and order in patterns to the

to consistent range July with growth of we expect single-digit high remain will mid organic our XXXX. ending As such, the initial year that percentage guidance for sales XX growth

range expense approximately income $XX $XX include depreciation of also unchanged expenditures rate The and and $XX amortization million. million, other approximately an are approximately and guidance XX%, to of tax elements capital our of million of

don’t As strategy. per major capital allocation, changes foresee our we in any

will our acquisitions in we where We right fit will investing and quarterly Yesterday, buybacks our is opportunistic with organic dividend be we looking announced the is keep for strategic the business. clear. price and while

closing turn to timely thoughts a through price manner cover balance and will or a an economic as shareholder Russell? over dollar, risks divisional sheet and can’t the I a enough before strong tool we further drive call to others, includes have overall our Potential results increases to in some activity. will of it to guidance, We Russell now use in value. offset to that U.S. we this slowdown among strengthening inflationary pressures Q&A. long-term provide the back

Russell Shaller

first software division, effective you, business. was IDS, IDS efficient where quarter launches our vast in organic their of product our innovation manner. sales and million customers X.X%. to product for new are steady IDS outlines of continue Solutions In get help $XX.X to the the results R&D Identification and help our in them this Thank continue were more Aaron. become focus on a with goals this XX R&D. majority done of sales cost The the stream that invest particular million services was jobs a more $XXX.X and quarter in our combining in quarter we Slide growth

product competitors. that well. last push tailwind to for We apart productivity comprehensive programs our Along locks customers’ of a and to durable combined safety provide materials, secular efficiency we employee percentage to as productivity, Segment programs Brady’s offerings, requirements. It’s our service their all to these type profit have its increasing solution that experience, improves from Brady’s set devices. with this lockout/tagout of proprietary tagout improving that as come of customer deliver printers, lockout we our our gains compared Brady a industry continue while to or sales focus customized years For customer the safety leading and These our with improved XX.X% experiences demand each our our will unique comprehensive quarter. believe for Brady’s quarter and increased instance, for meet a productivity XX.X% as in software, – unique solutions. LINKXXX thus increasing companies complete

we this to period, As due see can inflationary continue we quarter-to-quarter actions. managed expect pricing segment in to our to fluctuations through margins profit the timing of

negative inflation driven is goal while growth to impacts offsetting profitability. continued deliver grow despite Our the of zero-COVID strong periodic to input policy. in sales by Asia continue cost in to remain lockdowns China Regionally, price sales competitive, and their

in X% this this was organic growth organic the mid-teens quarter. were quarter. Europe, up In Asia our sales

environment. European their this Our quarter. did in team very X% organic managing this of growth And job of in an Americas, sales challenging growth, excellent driving the we had while structure approximately cost

drive continue growth to to investments GDP and above gives untapped lineup business. markets we that product to IDS sales sales into organic generate our years us confidence will for in new the expanded Our our come expansion

summary Moving XX, to this declined you financial quarter appreciation Slide entirely X.X% of our safety a the due to WPS U.S. will performance. of dollar. significant find workplace sales

it’s with and more are quarters. WPS last the sales fold quarter marks – you strip currency, increase quarter. is increased in headwinds to quarter last million facing. generating than profitability year currency X.X growth several from consecutive of This we been major major $X.X profitability foreign of organic Segment profit in our first business even have the $X.X million of the this a of fourth a growth If foreign This we sales our improvements had X.X%. out over organic continuation

Australia business Looking in U.S. continued at our growth the saw WPS Europe we quarter. contracted organic this our geographically, and where in businesses

to We business ensure have our improving. is been focused on approach a three-pronged WPS that sustainably

to ensuring relevant, our identifying First, a most skews value customers. provide are focus products we are our with the on that

by the website on business is have product. WPS with our along of increasing several level of our been value focus, heightened from to a solutions, than we our number foundation all costs, custom with significantly personnel customers our third, overhead And the accelerate the well. businesses that key spend our enhancing shift on reducing choose With catalog and our and of driving and costs, efficiencies catalogs. customers our and advertising away produced our improving WPS brands provides our while to are of catalog are online we distribution Second, consultative selling, And performing value helping right more internally including items. simple

and will our improvements continue business profit at portfolio. ahead, products to drive our critically we in Looking look we continue will to

Although the positive is year, our of sustainable. this WPS improved comparables have that on the quarter we the very half performed across and Brady well team clearly are organization. ensuring challenging building focused results momentum in get this more back business

an in are We enviable financial position.

off increase and years in coming quarter. solid, caution realized are two We outlook. viewpoint our per the near-term, first growing looks but share in the In per demand share consecutive macro-economic record in earnings current we earnings just the reflects XX.X%

we such, down certain appropriate. levels and businesses cost containment inventory drawing measures initiating will As proactively be in where

Given flow, in to journey. we have and geographic economic customers to serving to expansion work even our healthy during through improve the while our our research ability and generate their ability automation capabilities as invest challenging development, they continue cash times,

that, these you Q&A With supply work companies to their instructions session. I’d listeners? drive tailwind to our the expect like please we and shorten initiatives, automation increase With have would Operator, for to to chain, start as to years provide come efficiencies.

Operator

from first line George of Our Securities. Bank from Instructions] America comes question of Staphos [Operator the

Cashen Keeler

morning. this George setting actually good hi, Yes, for morning. is This Cashen in

what throughout just coming quarter? maybe here trajectory to in of can month I you out quarter, the quarter And second month? been then just the demand guess now just the your generally first So has talk trends the about

Russell Shaller

Yes, sure.

have order some we historically lumpiness be than So, patterns seen more so in normal. would

for channel the from lot a use right cases. their of is the think customers is searching distribution some the is level of our what demand of they still I what that And seeing are and inventory.

was a I up. the thought speaking And got had that we rest that September the weak. has actually been we Europe now steady. of all virtually world of been So I period right am And then has October, steady. unusually brief filled that in the pretty And pretty Americas into as of got

the which basically with QX QX, strong into place. going pretty are we way in left we a So, is

Cashen Keeler

guess strong, even helpful. organic strong in a That’s on pretty then growth Okay. And was IDS, I comparison.

ultimately, So, that? so on I Was more a well? that, you us and sense pricing, guess what driving of give a as product that was just or demand maybe just level can trends

Russell Shaller

Yes.

is and obviously, So, to is demand. also pricing, with a And pricing do growth a of do to the playing organic with there role. having part having

We going pleasantly surprised want like say order book be of our seeing been, to think very into said, our from performance we And I have that I to QX, I QX. degradation no are strong. continues

Cashen Keeler

just Okay. X.X did I acquisitions, and And guess the these those, out, Got on quarter. it. it, you then call year last you trace through lapped have I guess ago, track build

where markers looking do I building to stand What mile and we be several that what needs next guess we now solution? are the should and I over be the So, quarters? comprehensive guess in ultimately, trace track for terms of out done

Russell Shaller

Yes.

are So, on and this we have internal own we journey. with They systems, feel our is which important. the that very now made. knew comfortable long acquisitions a We was is

next businesses. all across three We the of step R&D here really are kind melding is The teams two-fold.

Nordic little businesses, the a a corporation. of I Some than as are focused we on retail was will more take

industrial more of so their are And products. making some versions of we

in which few in are You code, the on in the focused industrial the we solutions. And was those type also more doing will next see marketplace healthcare, quarters.

more industrial are to they robust. are suited more environment. So, an They

where expected interchangeable So, and to and printers. we other our make these with long journey, our had each look products in systems a we and them industrialize feel and operating

of products don’t much need So, to work engineering make just matter really additional way is together. We to or an really getting at acquisitions it this in the a this of happen. and of the epiphany, it point,

Cashen Keeler

Thanks. Okay.

Operator

question. One moment our for next you. Thank

comes the of question next from from Ferazani line Steve Sidoti. Our

Steve Ferazani

because for lot Thanks about dig Good morning guidance a do I There the all Aaron Russell, with detail is on the didn’t here. to call. obviously on I – move. of a range, want the bit moving it your little into parts Aaron. comments

out would that have months you would three guidance isn’t of Specifically, And the more And positive stronger higher comfort a unless pointed coming the complicated than lead the just end? that range needs offset it $X.XX what it down lower to something ago, Sort was your of question. to to the level that dollar to impact. sort else on and a why give and I happen that of didn’t and that get versus sort that. us fact hear

I know. Sorry,

Aaron Pearce

okay. That’s

headwind in year, of provided So, when coming guidance, get as that somewhere translation U.S. And original neighborhood we margin that’s stronger from to well XX%. would of dollar. the our foreign had course, into we XX% as provided any the we a currency compression the

to So, a frankly, significant continuing of order push it been it hasn’t And course, to held But and patterns have gains, remained there Russell pretty have bit talked it as in been as we with able clearly efficiency strong. and that about well. sales good mentioned frankly, pricing got we overcome worse.

never from very the the ending stronger remain range we U.S. guidance we foreign be hit what will seems even headwind to confident that with currency this So, dollar.

Steve Ferazani

higher needs work What out? end, you opposed the the as end gets lower what to to to

Aaron Pearce

that Brady, continuing for need our line. investments know gross margin. as make important top profit to are drive Well Sales we to you – the XX% XX%-ish gross the and at super

you we So, we not of need of again, WPS are range. confident guidance to the improved that, line. well. But we know, end hit hit will top that quite as the bottom continue substantially on we we our Plus, And line top hit are will our as has course, without our to growth, guidance that range. going

to just top summation lot $X.X we Brady parts, and a need to billion the make like the continue smaller is execute need a lot complicated and businesses. pretty moving And line. a business to to always, drive with investments So, a of of of we

Steve Ferazani

I the think softening the some When in that? are SG&A. covered Alright. about offset of we lower helpful. largely margin, how quarter, think sounded you there the about this on terms drain It can sequentially, SG&A gross by much That’s lower like Okay. specific there one-offs

Aaron Pearce

that minor. Yes. There couple relatively are definitely a were

been us, that certainly as will matters say However, some to out. call a for that compensation we in we incentive experiencing we have a And have some which we nice continue. I expect well, – expenses, reductions reduction in based bit healthcare would had

over currency, top So, and as course, of well. this all it like foreign line, of much component bigger is of expense then certainly the or foreign our SG&A currency hurts down drives

you anticipate X%-ish that revenue, basically SG&A So, reduction as apply and can take the we to in well. expense that

So, of by of And in at remainder year, the then investments currency expenses, for that that partially they see should go offset are our SG&A foreign as course, October and XXst, rates well. force we stay expense continued where you sales the is etcetera. marketing if down were this then exchange making

Steve Ferazani

the means ribbon can saw fits the code get and in, in in all the acquisitions those little I more that you about a announcement for I for Great. talk how that If process from of what bringing up the one cutting and that. Thanks Can pictures bit that sort in? of Utah.

Russell Shaller

Yes.

pre-pandemic, a where supply it’s global look shipping relatively and drama to first, we mean distribution free shipping, – getting to at products closer not If possible, hub-ed event. it’s small [ph] look pretty were we customers. the global super it’s was channel. at I transportation chain on-shoring to significant. So, But a continue

our and closer rates, the through caused have them have us had in hub-ed went our opportunities it And As we of customers. how shipping we pandemic, shipping to rethink products. have some to uncertainty to deploy we we time, what

That’s this hub a partially we case. this in to able faster lead in principal. it Malaysia by since of Asia that’s sold. bit it to where and and particular times, customer, is little it the partially gives were case obviously becomes closer to location, the used So, product And principally it in the to And do much the in us we and bringing this Singapore. in it back U.S.,

a products manufacturing how have continue was we at do customers the close part So, And to of we we that have as both and possible. and this look And our situated deployments we have as to all have of inventory. think throughout desire to our where our I inventory strategy. our globe general

Steve Ferazani

So, see of types more should we these of developments? expect to

Russell Shaller

It part for are we are have distribution is huge to dozens all one through a the really will don’t of are and block of like centers. where business locations a saying, be to now the running. of move going instance. gradual. Chinese U.S., literally are of manufacturing And a we and And upgrade, But dozens again to the we we comprised model actually Officer look our we Operating we are this. And and we of the appropriate why for of have Chief at reasons locations look say, they business

scheme future. making other It’s distribution of in as are as code like is pretty imagine smaller position, driving can things. the center, sure being we cost both towards the more in all optimally. well customers I did this small our efficient, down again with we So, our which serving that operationally ones

Steve Ferazani

Aaron. Russell. Thanks Thanks Great.

Operator

Keith from comes Northcoast Housum [Operator the of line Instructions] Research. from Our next question

Keith Housum

Good morning guys.

changes R&D I quarter? incentive client up this noticed following your have compared what was question, in you to Russell, the to and to quarter. the the plan previous a on the are contributor last expense Just SG&A, mentioned quarter comp both that

Russell Shaller

change to terms been plan no total of No, envelope. of there our the has in Yes. kind

on incentive harder made current bit definitely out is We We to and I that more slightly incentive is environment get indicative to max to have uncertainty. the the a little of more compensation. think compensation, easier will it there say where

and terms few you you. the businesses years of what have in ago, Brady, back draw to a across look could If some profit you gross operating a and ruler of margin

I think our dynamics. in of say now reflective is I will changes scheme more

hasn’t say a that the Now, so changed penny will level, at structure nominal bonus year-over-year. I XXX% the

same, base So, the keeping kind low are but we stretching it of out the high. we are and

of Now, at we we do high look phenomenal. we we the year range structure. at it every like I end was most Last up, the quarter, companies, the are absolutely it. And bonus of true think and very

this hit to tougher As be targets. coming some we lot a we into year, are going it’s of to those think fiscal

so And we revised down. it

QX think we going stable we So, QX. what QX. a from to – do are the an see you swing nominally range. are from just to But I more It’s impact to I consider back QX get into

Keith Housum

context on me gross revenue give on? a and or of it’s that bottom Is what little you based profits, Can line? based bit on

Russell Shaller

Yes.

parts surprise, top really are it principal of revenue income. bottom line, two and So, operating the it line, no growth

Keith Housum

increases, Appreciate you. that Got it. I margins Thank do guys like and have are price you raw it. far you contributors are So, in how your material know your custom? the in Helpful. lagging, the increases, you long And that think gross increases. still commentary terms are price other of

of So, inflation a still example, increases to next through had came if today, several the go price quarters? the to halt for will kind

Russell Shaller

of say increases, us when But months today, increase are now, It pricing is nuance some we might raw that our how future of anticipating right is customers, it make a do are in the Now, about there at. stop from and takes because If tens do most we change I our stopped future inflation we anticipating there get literally we now, sheer SKUs to a through materials. hundreds in because we of there three actually also we in increases periods. process, And would notification be products and two – of anticipating of least right a a price to in there would price effort would it. are months here and our decision couple look because to into small go price non-trivial is increases January. places thousands essentially at But still

now the are that a saw always in still a happen, right sudden we all significant but backpedal are it decision of – could that’s making inflation. we going We change we to

Keith Housum

Great. I Thank it. appreciate you.

Operator

At you. I for like Thank the back Russell and remarks. President would to CEO closing time, Shaller, this turn conference to

Russell Shaller

perform of direction Thank questions. to for have for regardless faster business today history is Perfect. now which much a all that a time GDP Brady very than has well your company. proven the economy being you thoughtful growing We and positioned your had. of

XX% upper us are to actions in near XX% help Our stay expected margin. the to gross pricing and profit in efficiency

safety though taken well economy balance shareholders. enables Our Even we IDS very organic time may disconnect future actions investing uncertain, macro division fortress continues this to Brady’s and optimistic we future. Thank in growth, Operator, Have about clearly you of And working. to is which you funds the call. also have both improve am workplace to keep a and are returning while I have to inorganic our great the us for the your business sheet day. the a our morning. perform

Operator

for today’s concludes Thank participating. This call. conference you

You disconnect. may now

Brady (BRC) 17 Nov 222023 Q1 Earnings call transcript