ASA’s February 2025 Sales Report: Modest Gains in YTD Sales Amid February Decline

ASA’s February 2025 Sales Report: Modest Gains in YTD Sales Amid February Decline

By primary business emphasis, the Industrial PVF firms reported an increase of 4.6% in year-over-year sales for February as well as year to date through February. They reported a modest 0.3% increase in Trailing Twelve Months sales. PHCP firms reported -1.2% decline in sales for February, with year-to-date sales up 3.7% and TTM sales up 2.5%. PHCP & PVF firms reported a decline of -3.7% for February. On a YTD basis sales declined a modest -0.5%, and TTM sales were up nearly 1.2%.

All respondents overall reported a median sales decrease of -0.4% for February 2025 vs. 2024. On a month-to-month basis, February sales were down -6.8% vs. January. Calendar YTD sales increased 3.0% and TTM sales through Feb. 28, 2025 increased 1.8%.

Inventory increased 4.3% for February 2025 vs. February 2024. The median Three- Months Average Days Sales Outstanding edged up to 42 days for February.

Economic Indicators:
The final "Real" GDP growth figure for the 4th quarter of 2024 was 2.3%. Total wholesale sales for January increased 3.5% year over year, while inventory grew at only 1.2% vs. the prior year. The growth in "Real" wholesale sales was only 2.3%--indicating a third consecutive month of an

uptick in inflation. Housing starts for February were significantly higher than January but still below the level of February 2024. Housing permits declined for the third consecutive month. The unemployment rate for February edged up to 4.1%.

What ASA members are saying:

“Business will ramp up when the tariffs are figured out. A lot of money sitting on the sidelines.”

“Business continues to be stronger than expected, but tariffs and the corresponding price increases are starting to raise question marks on how long this growth will continue.”

“Focus on lean inventory and customer score-carding remains at the forefront. With costs being where they are, effective cashflow management is what keeps our business going.”

“High employment costs continue to rise and bring down EBITDA.”

“Overall quote and sales activity improved during February; however, tariffs, announced vendor costs increases and actions being taken by the current federal administration are creating headwinds that are increasingly likely to stymie activity in the coming months.”

“Overall, our market conditions are strong, but tariffs are causing customer uncertainty."

“Sales continue to be steady and are outpacing sales from the prior year. Continuing to monitor tariffs and the impact they may have on the economy.”

“There is a lot of uncertainty regarding future economic conditions, and it showed in our February sales numbers. They were much lower than we budgeted (miss of ~10%).”