Tech Data files reports, reveals Europe's drop
Tech Data would have seen a big fall in European sales if it had not taken over SDG's business last year. It has finally filed its quarterly reports for the quarters ended April 30, 2013, July 31, 2013 and October 31, 2013 and has given results for the third quarter and nine months ended October 31, 2013.
In Q3, SDG contributed approximately $560m (around €416m) to third-quarter fiscal 2014 net sales. Excluding SDG, the European region's net sales decreased approximately 12% dollars and approximately 16% in euros from the prior-year quarter. The decrease in net sales excluding SDG is primarily attributable to weak economic conditions in certain countries, it says as well as a decline in market share in several countries resulting from competitive pressures and a focus on gross margin percentage. It is clear that it has been walking away from lower margin business in the region.
Europe's first nine month net sales were $11.3bn (60% of worldwide net sales), an increase of 6% (+3% in euros) from the prior-year period. SDG contributed approximately $1.6bn (approximately €1.2bn) in net sales to the nine-month period ended October 31, 2013. Excluding SDG, the European region's net sales decreased approximately 9% in dollars and approximately 11% in euros from the prior-year period.