Beacon Roofing Supply, one of the largest distributors of roofing materials, posted solid third-quarter results, due to a surge in digital sales, which grew four times faster than the company’s total revenue. For the fiscal third quarter ending September 30, sales rose to $2.77 billion, a 7.4% increase from $2.584 billion in the same period last year. Net loss was $145.3 million, an improvement from a $161.3 million loss in the third quarter of 2023.
“In the third quarter, we increased digital sales approximately 28% year-over-year,” CEO Julian Francis shared with analysts during an earnings call. “Digital sales to our residential customers were a particular highlight as we achieved our highest quarterly adoption rate ever, surpassing 28%.”
Beacon has been rolling out several new initiatives to accelerate digital growth, including:
- Digital Measurement tools: Beacon is partnering with GAF, a leading roofing and waterproofing manufacturer, to offer GAF QuickMeasure, which provides contractors with precise roof measurements and guaranteed delivery times. Single-family home measurements are delivered within an hour, while multifamily and commercial properties are measured within 24 hours. The tool also offers customizable 3D renderings that display past views for tracking property changes, along with a detailed bill of materials at no additional cost.
- Expansion into Canada: Beacon recently launched Beacon PRO+ in Canada. This no-cost digital tool, already used by thousands of U.S. contractors, enables Canadian customers to manage their business and sales processes from any location. Beacon PRO+ offers features such as:
- Ordering materials: Contractors can order building materials online and connect with their local Beacon branch.
- Account management: Allows contractors to securely manage their accounts remotely.
- Delivery scheduling: Offers flexible delivery scheduling to job sites or local branches.
- Store locator: Contractors can easily locate Beacon stores, get directions, and access contact information.
- Order review and reorder: Enables contractors to review and reorder from previous orders.
- Automatic rebate tracking: Streamlines rebate tracking.
- Delivery tracking and sharing: Provides notifications on delivery tracking and allows sharing of delivery photos with customers, insurance companies, or other contractors.
- Templates access: Contractors can use or create templates for streamlined project management.
“Our online capabilities continue to be a clear competitive advantage for Beacon, as sales through our digital platform enhance customer loyalty, increase basket sizes, and boost margins by roughly 150 basis points compared to offline channels,” Francis noted.
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