Counselor Top 40 supplier 3M/Promotional Markets (asi/91240) says sales slipped slightly in the second quarter of 2024 – a performance in line with the overall revenue trend at 3M, the promo company’s publicly traded parent corporation.

For 3M/Promotional Markets, sales dropped 0.9% in Q2 compared to the same quarter the prior year, Misty Friedrichs, contract national sales manager with the company, told ASI Media. More specifics weren’t available, she said, as 3M doesn’t break down the division’s total performance in its quarterly financials.

Friedrichs attributed the decline to a couple of factors. One was a post-COVID recovery correction.

“2022 and 2023 were recovery years from the pandemic, so they were great years in terms of sales,” Friedrichs said. “As we settle back into a more normal sales cycle, it will look a little lower compared to the last couple of years.”

Another factor was broader marketplace conditions. “We believe buying habits become a little more frugal in election years, and this year perhaps a little more so due to the chaos in our economy,” Friedrichs shared. “People are more hesitant to spend on certain categories.”

Industry-wide, promotional products distributors collectively increased sales, on average, by 1.3% in the second quarter of 2024 – a gain that came after a year-over-year decline in Q1, according to the Distributor Quarterly Sales Survey from ASI Research, which was released last week. 

GOOD NEWS! After #promoproducts industry sales declined for the first time in nearly three years last quarter, ASI Research shows that distributors engineered a collective sales increase in the second quarter of 2024.https://t.co/1t50Rtt0BL@asicentral

— Chris Ruvo (@ChrisR_ASI) July 22, 2024

Headquartered in Minnesota, 3M is a multinational conglomerate with a diversified business that operates in fields that include consumer goods, healthcare and worker safety.

Overall, the corporation’s sales across all its businesses fell 0.5% on an annual basis in Q2 to $6.3 billion. For the first six months of 2024, total revenue was also down about 0.5% to approximately $12.27 billion. Still, 3M noted that in Q2 organic growth on adjusted sales was up 1.2% year over year.

The picture was brighter for 3M on the bottom line, where performance improved despite the topline retreat.

In Q2 2024, 3M’s net income tallied about $1.14 billion, or $2.07 earnings per basic share ($2.07 diluted share), which was up from a loss in 2023’s second quarter. Through the first six months of this year, 3M’s net income was nearly $2.1 billion, or $3.74 per basic share ($3.73 diluted EPS) – again, an improvement on a loss from the prior year.

“As I look ahead, I am focused on three priorities: driving sustained organic revenue growth, increasing operational performance and effectively deploying capital,” said 3M CEO William Brown. “I have long admired 3M’s track record of innovation and am excited to be leading this great company and by the opportunities ahead.”

Brown was named CEO in March. In July, 3M announced that its then chief financial officer, Monish Patolawala, had left the company. The search for a new CFO continues.

Based on reported 2023 North American promotional products revenue of $108.8 million, 3M/Promotional Markets ranked 17th on Counselor’s most recent list of the largest suppliers in the industry.