BLOOMINGTON, MINN. – Sales continue to grow at Toro. The company announced net sales of $375.6 million for its fiscal third quarter, which represents nearly 14 percent growth. In addition, the company’s earnings climbed nearly 30 percent to $16.9 million.
“The quarter’s results were most gratifying from the standpoint of growth in both revenues and earnings,” remarked Ken Melrose, Toro’s chairman and CEO. “The sales growth was driven primarily by newly introduced products, coupled with lower costs. Moreover, it was rewarding to see sales pick up so strongly after a sluggish first half due to unfavorable weather and high beginning inventories, which are becoming in line.”
Toro provides a range of equipment to the green industry, and Melrose reported that “sales in all areas are benefiting from our focus on introducing new products that deliver meaningful innovations in their categories.”
Sales to consumers skyrocketed 40 percent in the quarter, while professional sales were up 6 percent from the same period last year. The company reported that it is seeing customers “order closer to retail demand, reflecting their concerns about inventory.” This trend kept sales lagging slightly behind retail performance as dealers and distributors strive to minimize their inventory levels. Still, professional sales accounted for nearly 63 percent of the company’s overall performance in the last three months.
Surprisingly, Toro's stock, which has enjoyed a tremendous year thus far, dropped more than 5 percent today after the company's announcement and the subsequent downgrading of the stock by a prominent analyst. Still, the stock closed at $56.70 a share, which is up 45 percent from its 52-week low point.