Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 49

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 49
---
 consolidated organic sales by approximately 1%. 

Cost of Goods Sold

Cost of goods sold for the first six months of 2025 was $8.9 billion compared to $8.5 billion for the first six months of 2024, an increase of 4.5%. Cost of goods sold as a percentage of net sales was 78.9% and 78.4% for the first six months of 2025 and 2024, respectively. The unfavorable increase of 50 basis points primarily reflects a decrease in gross margin in all three segments, which is inclusive of higher inventory adjustments, partially offset by higher supplier volume rebates.

Selling, General and Administrative Expenses

SG&A expenses for the first six months of 2025 totaled $1,708.5 million versus $1,657.8 million for the first six months of 2024, an increase of $50.7 million, or 3.1%. 

The following table reconciles SG&A expenses to adjusted SG&A expenses, which is a non-GAAP financial measure, for the periods presented: 

Six Months EndedJune 30, 2025% of net salesJune 30, 2024% of net salesAdjusted SG&A Expenses:(In millions)Selling, general and administrative expenses$1,708.515.2%$1,657.815.3%Digital transformation costs(1)(13.8)(12.1)Restructuring costs(2)(1.6)(9.0)Loss on abandonment of assets(3)—(17.8)Excise taxes on excise pension plan assets(4)—(4.8)Adjusted selling, general and administrative expenses$1,693.115.1%$1,614.114.9%

(1)    Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)    Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(3)    Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.

(4)    Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan.

35

Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

SG&A