TRUE VALUE COMPANY ANNOUNCES FIRST QUARTER RESULTS
May 18, 2016
- Gross billings of $510.2 million, up 3.3 percent
- Wholesale comparable store sales up 1.7 percent
- Retail comparable store sales up 0.7 percent
CHICAGO, May 18, 2016 – True Value Company, one of the world’s largest retailer-owned hardware cooperatives, today reported gross billings of $510.2 million for the quarter ending April 2, 2016, up 3.3 percent or $16.2 million from the same period a year ago. Revenue was $356.8 million, an increase of 0.8 percent or $3.0 million.
Wholesale comparable store sales, on a gross billings basis, were up 1.7 percent in the quarter. Retail comparable store sales were up 0.7 percent in the quarter, with increases in eight of twelve regions of the country and in six of the cooperative’s nine product categories, led by Lawn & Garden, Farm Ranch Auto & Pet, and Hardware, Lumber & Building. In areas of the country where there was a mild winter, net comp store warehouse revenue decreased due to lower sales in snow and heating related products. This decrease was partially offset by favorable lawn & garden product sales as a result of the mild winter.
The cooperative planned for a loss in the first quarter of 2016, posting a net loss of $5.4 million, down $3.7 million compared to net loss of $1.7 million from a year ago. The net margin decrease was driven by planned investment expense incurred in connection with the execution of the strategic plan.
“Transformation requires investment and we are reinvesting significant resources to build a better True Value—for today’s members, today’s customers and for the future,” said President and Chief Executive Officer John Hartmann. “Our strategic plan is driving positive change, while we continue to make progress in key areas such as assortment productivity, brand building and core operational efficiency.”
During the first quarter, True Value continued to grow its square footage and retailer base. In the three-month period, the company added 257,000 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 1.3 percent for the quarter.