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GMS Inc. (GMS-0.79%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing reports net sales of $1,260,710,000 for the quarter, a slight increase from $1,258,348,000 in the same quarter the previous year. The increase is attributed to contributions from recent acquisitions and resilient pricing in certain product categories.
Gross profit for the quarter was $393,090,000, down from $414,720,000 the previous year, with the decrease attributed to gross margin contraction due to weakening demand and lower vendor incentive income.
Selling, general, and administrative expenses increased to $310,815,000 from $295,691,000, primarily due to incremental expenses from acquisitions.
The company reported an operating income of $4,784,000, a significant decrease from $86,225,000 in the previous year, largely due to a $42,454,000 impairment of goodwill.
Interest expense rose to $23,069,000 from $18,784,000, primarily due to an increase in outstanding debt and finance leases.
Net loss for the quarter was $21,409,000, compared to a net income of $51,905,000 in the previous year. The loss is primarily attributed to the goodwill impairment.
GMS completed three acquisitions and opened three new greenfield locations during the nine months ended January 31, 2025.
The company also implemented a strategic cost reduction plan expected to result in $25 million to $30 million in annualized cost savings.
As of January 31, 2025, GMS had available borrowing capacity of approximately $469.7 million under its ABL Facility.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GMS Inc. quarterly 10-Q report dated March 6, 2025. To report an error, please email earnings@qz.com.