Q2 2026 Net Sales Growth
Net sales increased 2% YoY to $1.8B in 2026-Q2, supported by a ~3% benefit from inflationary product price increases, steady maintenance activity, and a 4% increase in building materials sales ($218.7M), which helped offset overall declines in discretionary product demand.
Gross Margin Headwinds from Freight and Mix
Gross margin contracted by 30 basis points YoY to 29.7% in 2026-Q2, primarily due to elevated inbound freight costs and an unfavorable customer mix shift, partially offset by supply chain optimization initiatives.
CEO Transition Costs Impact Expenses
Selling and administrative expenses rose 4% to $273.1M in 2026-Q2, driven by $8.3M in CEO transition costs ($6.3M non-cash stock compensation and $2.0M cash costs); excluding these costs, operating expenses increased 1% to $264.8M.