Earlier today I said:
Other signs are pointing to the consumer slowdown extending beyond just housing-related stores. The consumer was the last leg in the economy’s stool, so businesses had better take up the slack or we could be in for more of a slowdown than we already have.
Right on cue, we learn that CDW’s Average Daily Sales Increase 25.3 Percent in June 2007 and 24.4 Percent in the Second Quarter of 2007:
Excluding Berbee sales in June 2007, and therefore on a non-GAAP basis, CDW’s (CDWC) average daily sales for June 2007 were $31.641 million, an increase of 15.9 percent compared to average daily sales for June 2006 of $27.293 million and total sales for June 2007 were $664.5 million, an increase of 10.7 percent compared to total sales of $600.4 million for June 2006.
That is a pretty darned good number. If it is happening across the board, and not as a result of CDW gaining market share, the GDP chart for tech equipment and software spending won’t look like this for long.
If it is an industry-wide phenomenon, there are positive implications for Tech Data (NASDAQ:TECD), Ingram Micro (NYSE:IM) and Mid Cap Watch List member Synnex (NYSE:SNX) as well as for their suppliers, primarily Hewlett Packard (NYSE:HPQ).