Net sales for the Toro Co. in the third quarter of fiscal 2022 totaled $1,160.6 million compared to $976.8 million in the third quarter of fiscal 2021, an 18.8-percent increase. For the first nine months of fiscal 2022, Toro’s net sales were $3,342.7 million compared to $2,998.9 million in the first nine months of fiscal 2021, an 11.5-percent increase.
“We delivered record results while advancing our strategic initiatives during the third quarter,” said Richard Olson, chairman and CEO. “Our ability to achieve this performance despite the broader macro uncertainty is a testament to the strength of our portfolio, disciplined execution, and collaborative approach. Our team continued to demonstrate resiliency and agility in this unique operating environment, while making progress in restoring historic margin levels and maintaining a sharp focus on serving our customers.
“Professional segment demand remained robust and broad-based. Our biggest challenge continued to be our ability to fulfill heightened order levels in this time of constrained supply. Residential segment demand was solid, moderating as expected on top of the higher base we have built with the past two years of double-digit growth, and aligned with more typical seasonal trends.
“During the quarter, we continued to invest for the long-term and prioritized the key technology areas of alternative power, smart-connected, and autonomous solutions. Our focus on technology leadership dovetails with our enterprise-wide commitment to environmental, social, and governance best practices. We were excited to introduce goals and metrics in our latest sustainability report, which should help us drive change in a meaningful way for all stakeholders.”
Solid demand going forward
Olson is optimistic about the company’s prospects going forward.
“We continue to see solid demand for our innovative solutions across our end markets and are well-prepared to capitalize on growth opportunities,” added Olson. “Orders in our professional segment remain strong, including exceptional momentum in underground construction and golf. For solutions geared to landscape contractors and residential customers, demand remains favorable and, as expected, retail patterns are beginning to normalize.
“On a macro basis, we are keeping a close eye on the mixed signals we are seeing in the economy. We are also watching the broader supply chain environment, which continues to show signs of improvement. Importantly, our team is driving operational efficiencies that put us in a favorable position as we close out our fiscal year and set us up as an even more productive and agile organization."
The company is updating its full-year fiscal 2022 guidance and now expects total net sales growth of about 14 percent and adjusted diluted EPS in the range of $4.07 to $4.17. This guidance is based on management’s current visibility in what continues to be a dynamic macro environment and reflects expectations for more normal residential demand patterns and continued operational execution, as well as modest accretion from the company’s Intimidator Group acquisition.
Professional segment net sales for the third quarter were $886.2 million, up 23.3 percent from $718.5 million in the same period last year. The increase was driven primarily by net price realization, higher shipments of zero-turn and stand-on mowers, and incremental revenue from the company’s fiscal 2022 Intimidator Group acquisition, partially offset by lower volume in certain key product categories caused by product availability constraints.
Residential segment sales were less robust. Residential segment net sales for the third quarter were $270.0 million, up 7.1 percent from $252.1 million in the same period last year. The increase was primarily driven by net price realization and higher shipments of zero-turn riding mowers and snow products, partially offset by lower sales of walk-power mowers and portable-power products.