B2B spares Systemax's blushes

Misco and WStore parent endures disappointing quarter as US consumer sales slump

B2B was the star performer in an otherwise "disappointing" set of results for Misco and WStore parent Systemax.

The New York-listed firm saw sales for its quarter ended 31 March fall two per cent to $913.6m (£564.1m) on the back of a steep fall in US consumer sales.

Chief executive Richard Leeds said: "On an overall basis, I am disappointed in our results for the quarter. The performance of our North America technology consumer business was below our internal expectations and masks the strong performance in the rest of the business."

B2B channel sales grew seven per cent to $512m, with both Europe and North America enjoying growth. In contrast, consumer channel sales fell 11 per cent to $400.9m.

By product, revenue drawn from computers rose 20 per cent to $262.2m, contributing 29 per cent of the total. Computer accessories and software sales fell by four per cent while sales of consumer electronics and computer components slumped by 19 and 24 per cent respectively.

Operating profit fell by 43 per cent to $10.6m.

"With a strong balance sheet, including cash balances of $111m, a truly multi-channel and web-centric model which is diversified by market, geography and channel, Systemax remains well positioned for the future," said Leeds.