04 Mar 13
Tech Data Europe up, thanks to SDG buy
Tech Data net sales for the fourth quarter ended January 31, 2013, were $7.5 billion, an increase of 5% from $7.1 billion in the prior-year fourth quarter. Sales in Europe were up 12% to $4.9bn (65% of worldwide net sales), against Q4 a year ago.
The change in presentation of vendor warranty services and certain fulfillment contracts reduced Europe's fourth-quarter fiscal 2013 net sales by approximately $137m (approximately €105m). Sales related to the SDG acquisition contributed approximately $623m (approximately €476m) to fourth quarter fiscal 2013 sales. Excluding the impact of these factors, Europe's net sales increased 2% in euros and in dollars after the translation effect of certain foreign currencies.
Gross margin was 5.09% compared to 5.27% the prior-year fourth quarter. The change in presentation of vendor warranty services and certain fulfillment contracts increased gross margin by approximately 16 basis points. The decrease in gross margin was primarily attributable to a higher mix of lower-margin mobile phone, tablet and software sales in the quarter, as well as the continuing effects from the company's implementation of certain SAP modules in the US during the second quarter, it says.
The European region's operating income for the fourth quarter was $58.8m or 1.20% of net sales compared to $59.8m or 1.37% of net sales in the prior-year fourth quarter. The change in presentation of vendor warranty services and certain fulfillment contracts increased Europe's operating income as a percent of net sales in the fourth quarter of fiscal 2013 by approximately 3 basis points. The year-over-year decline is primarily attributable to a higher mix of lower-margin products and higher expenses related to SDG.