True Value Company Announces Third Quarter Results
True Value Company, one of the world's largest retailer-owned hardware cooperatives, today reported gross billings of $494.9 million for the quarter ending Oct. 3, 2015, up 6.1 percent or $28.5 million from the same period a year ago. Revenue was $365.5 million, an increase of 4.2 percent or $14.8 million. The company reported net margin of $3.3 million in the quarter.
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For the nine-month period ending Oct. 3, 2015, True Value reported gross billings of $1,562.5 million, up 4.5 percent or $67.9 million from $1,494.6 million for the same period a year ago. True Value reported revenue of $1,151.2 million, an increase of 3.6 percent or $39.5 million from $1,111.7 million for the same period a year ago. The higher revenue in the period was mainly due to the timing of the Fall Reunion that was held in September of 2015 compared to October of 2014, as well as higher sales volume and the comparability of the weeks included in the year-to-date periods. The cooperative planned for a decrease in net margin in 2015 driven by investment expenses incurred in connection with the implementation of the company's strategic plan and posted a net margin of $10.9 million year-to-date.
Destination True Value (DTV) comparable store sales were up 5.0 percent year-to-date. Wholesale comparable store sales, on a gross billings basis, were up 3.1 percent in the quarter and up 3.6 percent year-to-date. Retail comparable store sales were up 3.1 percent in the quarter and 3.4 percent year-to-date with increases in eleven of the twelve regions of the country and in eight of the cooperative's nine product categories, led by Hand & Power Tools, Seasonal and Farm Ranch Auto & Pet.
"Our third quarter results show that True Value is on the move, as we continue to focus on engagement, growth and efficiency," said President and Chief Executive Officer John Hartmann. "The investments in areas such as brand awareness and national advertising, product assortments and customer service training are helping to continually drive our Members' growth and profitability."
In the nine-month period, the company added over 690,000 square feet of relevant retail space. In addition to expanding DTV and other relevant formats in its network, Busy Beaver Home Improvement Centers joined the co-op as one of its newest members. Founded in 1962, Busy Beaver today operates 16 full-line home improvement centers throughout Pennsylvania, Ohio and West Virginia.
"Welcoming Members like Busy Beaver to the True Value family supports our strategic pillar of growth, and enhances our ability to better serve customers throughout the U.S. and strengthens the entire co-op," Hartmann said.
ABOUT TRUE VALUE
True Value Company, headquartered in Chicago, is one of the world's largest retailer-owned wholesale hardware cooperatives with gross billings of over $2.0 billion and revenue of $1.5 billion in 2014. The True Value cooperative includes approximately 4,500 independent retailer locations worldwide operating under the store identities of True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply. Additional information on True Value and its retail identities is available at www.truevaluecompany.com.
True Value Company
Jean Niemi, Senior Director Corporate Communications