TRUE VALUE COMPANY ANNOUNCES SECOND QUARTER RESULTS
July 28, 2014
- Retail comparable store sales up 4.2% year-to-date
- Wholesale comparable store sales up 4.8% year-to-date
- Gross billings of $568.0 million, up 4.6% in the quarter
- Revenue of $429.5 million, up 4.5% in the quarter
CHICAGO, July 28, 2014 – True Value Company today reported gross billings of $568.0 million for the quarter ending June 28, 2014, up 4.6 percent or $25.1 million from $542.9 million for the same period a year ago. Revenue was $429.5 million, an increase of 4.5 percent or $18.3 million from $411.2 million for the same period a year ago. The cooperative posted a quarterly net margin of $23.2 million, down 2.5 percent or $0.6 million compared to $23.8 million from a year ago.
For the six-month period ending June 28, 2014, True Value reported gross billings of $1,028.1 million, up 4.2 percent or $41.1 million from $987.0 for the same period a year ago. True Value reported revenue of $761.0 million, an increase of 5.1 percent or $37.2 million from $723.8 million for the same period a year ago. The 2014 year-to-date net margin was $24.1 million, down 0.4 percent or $0.1 million from $24.2 million one year ago.
Comparable store sales were up 4.2 percent in the quarter and 4.8 percent year-to-date, on a revenue basis, which was reflected in the increase our retailers experienced with retail comp store sales in the quarter of 2.2 percent and 4.2 percent year-to-date. True Value Company’s expanded farm, ranch, automotive and pet product assortments, plus seasonal and plumbing categories, drove the majority of sales increases. Sales from new stores on a gross billings basis exceeded lost sales from terminated stores by $10.7 million for the first half of the year.
“In the second quarter, we saw a continuation of first quarter sales increases. In fact, on a year-to-date basis, we had revenue increases in all regions of the country and in all 10 of our product departments,” said President and Chief Executive Officer John Hartmann. “From a profit perspective, the incremental gross margin from the sales increase was offset by higher inbound freight expenses and our planned one-time expenses and retailer subsidies related to the roll out of our new ’Color by Design’ paint colorant systems, equipment, displays and collateral.”
During the first half of the year, True Value continued to grow its square footage and member base. In the six-month period, the company added 428,000 square feet of relevant retail space continuing its commitment to grow Destination True Value and other relevant retail space in its network. Conversions continued at an elevated pace with 34 new members signed to-date in 2014, for an estimated $11.9 million in new annualized handled business.
About True Value Company
True Value Company, based out of its Retail Support Center in Chicago, is one of the world’s largest retailer-owned hardware cooperatives. The True Value cooperative represents independent retailer locations worldwide with retail sales in their communities totaling approximately $5.5 billion. Store identities include True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply. Additional information on True Value Company and its retail identities is available at www.truevaluecompany.com.