TRUE VALUE COMPANY ANNOUNCES THIRD QUARTER RESULTS
November 02, 2016
- Strong Double-Digit Net Margin Increase
- Gross billings of $1,588.1 million, up 1.6 percent year to date
- Revenue of $1,158.9 million, up 0.7 percent year to date
- Retail comparable store sales up 1.5 percent year to date
- DTV retail comparable store sales up 2.5 percent year to date
CHICAGO, November 2, 2016 – True Value Company, one of the world’s largest retailer-owned hardware cooperatives, today reported gross billings of $1,588.1 million for year to date ending Oct. 1, 2016, up 1.6 percent or $25.6 million. Revenue was $1,158.9 million, an increase of 0.7 percent or $7.7 million.
The cooperative posted net margin of $20.5 million, up 88.6 percent from a year ago, driven primarily by continued efficiencies in lower inventory provision and adjustments, advertising costs and freight-in expenses.
“Despite a soft retail environment, True Value members continue to see the benefits of our strategic plan unfold as they grow their business and engage their markets,” said President and Chief Executive Officer John Hartmann. “Our continued strong growth in net margin shows that we are making clear and steady progress.”
Retail comparable store sales were up 1.5 percent, with increases in nine of twelve regions of the country and in six of the cooperative’s nine product categories, led by Farm Ranch Auto & Pet, Lawn & Garden and Paint. On a gross billings basis, wholesale comparable store sales were flat relative to last year.
True Value continues to grow its square footage and retailer base. In the nine-month period, the company added nearly 1,120,000 square feet of relevant retail space, furthering 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 2.5 percent year to date.