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This week, True Value Company reported its year-end results on a slight upswing from the previous year.
According to an article in Business Wire, the company’s total gross billings for the fiscal year ending Jan. 2 were $2,033.2 million. Revenue was $1,497.2 million, an increase of 1.3 percent or $18.6 million on a comparable 52-week basis.
The Destination True Value (DTV) store locations saw larger increases than the rest of the members, with comparable store sales for DTV businesses up 4.7 percent for the fiscal year.
The company also experienced its fifth consecutive year of increased annual sales as wholesale comparable store sales, on a gross billings basis, were up 1.8 percent for the year. Retail comparable store sales were up 3.1 percent with increases in every region of the country and across all product categories, led by Farm Ranch Auto & Pet, Lawn & Garden, and Hand & Power Tools.
“Our 2015 results demonstrate that True Value is investing in the future of the co-op for its members as we continue to focus on the strategic pillars of engagement, growth and efficiency,” said President and Chief Executive Officer John Hartmann.
The cooperative planned for a decrease in net margin in 2015, posting a net margin of $19.0 million for the year, driven by investment expense incurred in connection with the implementation of the company’s strategic plan. As committed, the company will pay a similar cash patronage dividend as last year.
“There has been a compelling amount of progress made in support of the plan as evidenced by our members’ success,” said Hartmann. “In 2014 and 2015, our growth averaged 3.5 percent on a gross billings basis—well above the historical levels. And for the five years prior to the start of our plan, retail sales averaged less than one percent. In 2015, retail sales increased 3.1 percent and DTV stores increased 4.7 percent. The work we are doing is making a difference and that is where our focus remains.”
In 2015, the cooperative announced a more flexible, affordable DTV, making it easier than ever for members to update their stores. As such, in 2015, the company added nearly a million square feet of DTV retail space.
In addition to expanding relevant formats in its network, a number of multi-store chains converted to True Value in 2015, including Busy Beaver, Miami Home Centers and National Lumber.
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