Brexit contributes to Tech Data Q2 sales decline

Distributor sees European sales drop three per cent and global sales down four per cent

Brexit was a factor in Tech Data performing below expectations in Q2, according to its CEO Bob Dutkowsky.

Globally Tech Data's net sales for the three months ending 31 July were down three per cent year on year to $6.4bn (£4.8bn).

In Europe net sales declined four per cent in the same period to $3.7bn.

On an earnings call, Dutkowsky explained that Tech Data's UK performance, which typically represents 15 to 20 per cent of the firm's European sales, dragged down the overall performance of the region.

"In Europe we experienced a broad-based slowdown throughout the quarter which we believe could be attributed to a combination of factors including product cycle, a competitive environment and general uncertainty created by Brexit as well as other geopolitical events in the region," he said.

"Sales volumes in the UK remained relatively consistent throughout the quarter and while our UK operations posted solid year-over-year growth, sales came in below plan.

"Longer term it's too early to tell what impact Brexit will have on IT spending in the region, however, in the short term the devaluation of the pound marginally impacted our Q2 reported results."

Net sales were also down in the Americas, dropping three per cent year on year to $2.7bn.

Despite this, Tech Data claims its US team gained market share in Q2 and outpaced the market in product areas including desktops, notebooks and tablet PCs. It added that networking and security also performed well.