The decline in the company’s profitability resulted from a quadrupling of fuel costs and a higher rate of returns, despite a 27% year-over-year increase in net sales for the quarter ending June 30, 2022.
Meanwhile, sales at the company’s Fwrd division rose 14% year-over-year to more than $45 million.
The company wrapped up the quarter with approximately $238 million in cash and cash equivalents and no debt.
“We delivered these results despite macroeconomic conditions that became more challenging as the quarter progressed, creating cost pressures that impacted profitability, and also contributed to a moderating year-over-year growth trend in net sales in June that has continued into the third quarter,” said co-chief executive Mike Karanikolas in a statement.
Looking ahead, the company is foreseeing a challenging business environment, with the fourth quarter expected to be the most difficult, the company’s CFO Jesse Timmermans said.
The company’s stock fell 14% in after-hours trading after the results were revealed.
