Systemax fights consumer slowdown in Q2

B2B operations shore up WStore and Misco parent's results as consumer and components sales feel the pinch

Systemax is the latest channel player to bemoan softness in the consumer and components markets in an up-and-down set of second-quarter results for the online resale giant.

For the three months to the end of June, the Misco and WStore owner grew sales eight per cent year on year to $872.2m (£532m). But this growth rate was effectively cut in half by the impact of currency exchange rates.

Q2 operating profit stood at $21.68m, up from $16.1m in the corresponding period last year. This equates to a rise in operating margins from two to 2.5 per cent.

Consumer sales stood at $389.7m, while B2B revenue was $482.5m. On a like-for-like basis, consumer sales fell four per cent, while B2B turnover enjoyed a seven per cent spike.

Second-quarter sales of computers and related software and accessories reached $494m, a rise of almost $70m on Q2 2010. But revenue from consumer electronics fell 4.6 per cent annually to $170.8m, while components sales plummeted 13.6 per cent to $106.5m.

"We delivered solid top-line growth in the quarter. Our B2B operations continue to perform well and once again led our performance as customers update their IT infrastructure," said Systemax chief executive Richard Leeds.

"Consumer channel sales were flat, reflecting a very competitive consumer technology market, particularly on the web. However, our retail stores once again showed solid growth."