Matt Kaelberer's questions to Global Industrial Co (GIC) leadership • Q1 2025
Question
Matt Kaelberer questioned the potential for gross margin improvement excluding the tariff impact, the mathematical effect of potential 150% tariffs on pricing, and customer receptiveness to these increases. He also asked if the current disruptive environment and strong balance sheet make M&A more likely.
Answer
Executive Thomas Clark and CEO Anesa Chaibi affirmed that, excluding tariffs, they see opportunities to improve gross margins through sourcing, freight efficiencies, and strategic pricing. Clark explained that while a 150% tariff would be significant on any single SKU, they would manage the impact across the entire portfolio. He noted that customers have been receptive and understand the situation, wanting clarity above all. Chaibi confirmed that M&A is a key growth lever and that the company is actively looking at opportunities that fit strategically, with their strong balance sheet providing the optionality to act.