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True Value reported gross billings of $444.3 million for the quarter ending March 30, down 0.9 percent for the same period a year ago, due to a nearly non-existent spring and a decline in lumber and building material vendor direct ship sales.
“While winter-related product sales exceeded the prior year, the general lack of spring weather this March versus last year was too much to overcome,” said President and Chief Executive Officer Lyle Heidemann. “Last year our retailers’ comp store sales were up double digits in March and this year they were down a high single digit.
“In April and early May, for the parts of the country where spring has arrived, our retailers on average are experiencing double-digit increases in their retail comp store sales.”
Heidemann also said first quarter profit was down primarily due to a decline in the gross margin rate and, as planned, a slight increase in departmental spending.
“The gross margin rate decline was driven by two factors,” he said. “First, as a result of the very different weather pattern this year versus last year, our product mix of regular replenishment sales had a much lower average margin rate. Second, our promotional product sales had on average a lower margin this year, compared to last. These rates are expected to rebound in the second quarter.”
Revenue was $312.8 million, an increase of 0.4 percent. The cooperative posted a quarterly net margin of $0.4 million, down $7.7 million compared to $8.1 million from a year ago.
