Hardware Retailing The Industry's Source for Insights and Information
This week, True Value Co. reported a decrease in both revenue and gross billings, citing unfavorable weather patterns that led to a decline in retail traffic for the first quarter.
The co-op posted gross billings of $502 million through the first quarter, which ended April 1, down 1.6 percent from a year ago. Revenue was $347.6 million for the quarter, a decrease of 2.6 percent or $9.2 million. Relative to the prior year, net margin remained flat.
Wholesale sales, on a gross billings basis, were down 1.6 percent in the quarter. Retail comparable store sales were down 1.9 percent for the same period.
True Value achieved net margin consistent with the prior year reflecting improved product rates. In addition, the company delivered on its commitment to reduce member transportation rates by 25 basis points.
Although weather trends affected quarterly sales, True Value made progress in the execution of its multi-year strategic plan.
“We continue to put the independent hardware dealer at the center of everything we do,” president and CEO John Hartmann says. “Coming off a year of record growth including new stores and remodels, stores that have implemented the Destination True Value format consistently see increased returns, experiencing comp store sales 200 basis points greater than overall retail comp.”
The company’s top three performing categories for the quarter were hand and power tools, hardware, lumber and building supplies and plumbing and heating products.
During the first quarter, the company added 534,930 square feet of relevant retail space through the flexibility and strength of the DTV format. Additionally, True Value’s International business continued to see strong growth with gross billings up 13 percent and handled sales up 18 percent.
True Value is based in Chicago, and the co-op includes about 4,400 independently owned and operated retail stores throughout the world.
