Shares of MSC Industrial Direct Co. (MSM) tumbled 7.09% in pre-market trading on Thursday after the company reported disappointing fiscal second-quarter results that fell short of analyst expectations. The industrial supply distributor faced challenges with declining sales and profits compared to the same period last year.

For the quarter ended March 1, 2025, MSC Industrial reported adjusted earnings per share of $0.72, beating analyst estimates of $0.68. However, this represented a significant 38.98% decrease from $1.18 per share in the same quarter last year. Net sales for the quarter came in at $891.7 million, missing the consensus estimate of $899.5 million and declining 4.66% year-over-year from $935.3 million.

The company's operating margin contracted to 7.0% from 9.7% in the prior-year quarter, reflecting the challenging operating environment. MSC Industrial's CEO, Erik Gershwind, acknowledged the difficulties, stating, "During our fiscal second quarter, we continued expanding our solutions footprint, maintained momentum in the Public Sector, and completed important milestones in reenergizing our core customer growth rate. Amid a challenging operating environment with industrial demand at low levels, we generated solid results that landed within our guidance range."

Looking ahead, MSC Industrial provided guidance for its fiscal third quarter, projecting year-over-year average daily sales growth between -2.0% and 0.0%. This outlook suggests ongoing challenges in the near term, likely contributing to the negative investor sentiment in pre-market trading. The company's ability to navigate the current economic headwinds and return to growth will be closely watched by investors in the coming quarters.