Hardware Retailing The Industry's Source for Insights and Information
This week, True Value Company announced its second quarter results for fiscal 2016, with gross billings of $585.1 million, up 2 percent or $11.4 million from the same period a year ago. The company also reported revenue of $438.7 million, an increase of 1.6 percent or $6.8 million.
Retail comparable store sales were up 2.5 percent in the quarter, with increases in nine of 12 regions of the country and in eight of the co-op’s nine product categories, led by farm, ranch, auto and pet; lawn and garden; and paint. Wholesale comparable store sales, on a gross billings basis, were down 0.2 percent in the quarter.
The cooperative posted a net margin of $13 million, up 40.5 percent from a year ago. The net margin increase for the quarter was primarily driven by improved gross margin in areas including advertising, freight-in expense as well as higher handled sales volume.
“Last year was the first full year of our significant reinvestment in the company,” president and CEO John Hartmann says. “Our Q2 net margin performance is a strong indication of the upward momentum from where we finished in 2015. We still have important work left to do, but we are clearly heading in the right direction.”
During the second quarter, True Value continued to grow its square footage and retailer base. In the six-month period, the company added 736,000 square feet of relevant retail space, continuing its commitment to grow Destination True Value (DTV) and other relevant formats in its network.
The True Value co-op includes more than 4,400 independent retail locations worldwide that operate under the store identities of True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply.
