BlueLinx Holdings Inc. reported its financial results for the first quarter of fiscal 2025, revealing a decline in net sales and profitability compared to the same period last year. The company generated net sales of $709.2 million, a decrease of 2.3% from $726.2 million in the first quarter of fiscal 2024. Gross profit also fell to $111.1 million, down from $127.7 million, resulting in a gross margin percentage decline from 17.6% to 15.7%. The net income for the quarter was $2.8 million, or $0.33 per diluted share, a significant drop from $17.5 million, or $2.00 per diluted share, in the prior year.
The decrease in sales was attributed to lower volumes and pricing for specialty products, which saw a decline of 4.9% to $479.4 million. In contrast, structural products experienced a 3.3% increase in sales to $229.8 million, driven by higher lumber pricing and increased volumes. The overall gross profit decline was influenced by both product categories, with specialty products' gross profit decreasing by $14.3 million and structural products' gross profit down by $2.3 million. The company noted that adverse weather conditions in certain regions of the U.S. negatively impacted sales volumes during the quarter.
In terms of operational metrics, BlueLinx's selling, general, and administrative expenses rose by 3.1% to $94.1 million, primarily due to ongoing technology initiatives and higher logistics costs. The company also reported an increase in interest expense, which rose to $6.6 million from $4.6 million, reflecting higher finance lease obligations. Cash flows from operating activities showed a net outflow of $33.9 million, compared to $31.1 million in the same quarter last year, largely due to decreased net income.
Strategically, BlueLinx is focused on enhancing its product offerings and expanding its market presence. The company engaged in capital investments totaling $6.4 million for fleet and digital transformation initiatives, alongside $28.1 million in finance leases for property and equipment. Additionally, BlueLinx repurchased 186,048 shares of its common stock for $15 million during the quarter, with $31.5 million remaining under its share repurchase authorization. Looking ahead, the company aims to maintain a disciplined capital structure while pursuing growth opportunities in higher-margin specialty products and expanding its geographic reach.
About BlueLinx Holdings Inc.
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