MSC Industrial Direct Co. Inc. (NYSE:MSM) Q2 2020 Earnings Conference Call - Final Transcript
Apr 08, 2020 • 08:30 am ET
[Operator Instructions] The first question today comes from Ryan Merkel of William Blair. Please go ahead.
Hey, thanks. Good morning, all.
Good morning, Ryan.
Ryan, good morning.
So first off, I want to get a better sense of the sales trend line through March and into early April. You said the first two weeks of March were up low-single digits. But I'm wondering what happened the last two weeks, and is the trend line getting a whole lot worse. And really, I'm just reaching for any kind of read on how bad April could be.
Ryan, sure. So, as we mentioned -- yeah, March first three weeks -- and what I'll do is split the discussion out into invoicing and then the booked orders which as I mentioned, usually we don't talk about on this call but these are certainly unusual times. Invoicing, first three weeks, average low single digits. You can do the math, but the last two weeks dropped into the double digits. I wouldn't say it was progressively falling through those last two weeks.
And the other thing I'd note, Ryan, is for us April -- that last week in March for us included three days of April, so you're getting a taste for April. And I wouldn't call out any discernible difference between week four and week five in March. We are now in the first week of our fiscal April, so we literally have two days under our belts. And for the two days, for what it's worth, I wouldn't call out anything different from the prior two weeks of note. That's the invoicing side.
On the booking side, as we mentioned, Ryan, what's interesting -- and I call it out because being in this business forever, it's the thing that I usually look at as my leading indicator for how we're doing. Bookings were we said for the months up high-single digit. Certainly stronger than first three weeks, but even those last two weeks of the fiscal month year-on-year were up, which obviously what that would mean as long as those orders come through and we believe most invoicing will catch up and will provide a buffer.
So that would be the color I'd give you through the month.
Okay. So, yeah, the bottom line is, it's not sales aren't falling off dramatically here in the last, call it, seven to 10 days, I think is what...
I mean, certainly relative to the first three weeks, a big step-down, but I wouldn't say between the two weeks of week four and week five of March, which again crept into April, I wouldn't see it as the trend line straight down, correct.
Okay. And then a follow-up there. I probably could do the math, but can you quantify the sales that are on backorder as of March? And I assume this has continued into April as well. I mean, how big the backorder get?
Hard to give you a number, but I mean, just you could