Valvoline, the automotive products and services company, has announced higher sales for its fiscal third quarter. As more consumers hit the roads and invested in car maintenance, Valvoline experienced a surge in revenue.
Strong Financial Performance
During the three months ended June 30, Valvoline recorded a profit of $61.6 million, equivalent to 38 cents per share. This marks a decrease from the $98.2 million profit, or 55 cents per share, achieved during the same period last year. However, adjusted earnings came in at 43 cents per share, surpassing analysts' expectations of 36 cents per share.
Impressive Sales Growth
Valvoline's sales saw an impressive rise of nearly 19% to $376.2 million, surpassing analysts' projected sales of $367.5 million. Additionally, system-wide same-store sales recorded growth of 12.5%.
Strong Summer Driving Season
Lori Flees, who will assume the role of Chief Executive, cited the strength of the summer driving season as a key factor behind the company's sales growth. The increase in same-store sales was driven by both volume growth and larger ticket sizes. Furthermore, Valvoline is actively working on expanding its margin by reducing labor costs.