More Than 40 Percent Net Margin Increase
- Gross billings of $585.1 million, up 2.0 percent for the quarter
- Revenue of $438.7 million, up 1.6 percent for the quarter
- Retail comparable store sales up 2.5 percent
CHICAGO, August 3, 2016 – True Value Company, one of the world's largest retailer-owned hardware cooperatives, today reported gross billings of $585.1 million for the quarter ending July 2, 2016, up 2.0 percent or $11.4 million from the same period a year ago. Revenue was $438.7 million, an increase of 1.6 percent or $6.8 million.
The cooperative posted net margin of $13.0 million, up 40.5 percent from a year ago. The net margin increase for the quarter was primarily driven by improved gross margin in areas including advertising, freight-in expense as well as higher handled sales volume.
“Last year was the first full year of our significant reinvestment in the company,” said President and Chief Executive Officer John Hartmann. “Our Q2 net margin performance is a strong indication of the upward momentum from where we finished in 2015. We still have important work left to do, but we are clearly heading in the right direction.”
Retail comparable store sales were up 2.5 percent in the quarter, with increases in nine of twelve regions of the country and in eight of the cooperative’s nine product categories, led by Farm Ranch Auto & Pet, Lawn & Garden and Paint. Wholesale comparable store sales, on a gross billings basis, were down 0.2 percent in the quarter.
During the second quarter, True Value continued to grow its square footage and retailer base. In the six-month period, the company added 736,000 square feet of relevant retail space, continuing its commitment to grow Destination True Value (DTV) and other relevant formats in its network. The DTV format consistently provides returns for True Value member-retailers; DTV comparable store sales were up 2.3 percent for the quarter.
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