Farm & ranch category helps Q2 results at True Value
True Value Co. reported revenue of $536 million for the second quarter, an increase of 1.2% from $529.5 million for the same period a year ago. The Chicago-based co-op posted a quarterly net margin of $22.2 million for the quarter, an increase of 1.8% over $21.8 million one year ago.
For the six-month period ended June 30, True Value reported revenue of $984.2 million, an increase of 0.7% from $977.3 million for the same period a year ago. Comparable-store sales to core domestic hardware store outlets were up 3% in the six-month period. The 2012 year-to-date net margin was $30.3 million, an increase of 1.7% from $29.8 million one year ago.
“Unusual weather patterns in much of the country have had a significant impact on our business,” said president and CEO Lyle Heidemann. “The warm weather in January and February clearly drove down sales of cold- and snow-related products, while the early spring drove earlier shipments in seasonal and lawn and garden product sales, resulting in softer sales in June,”
Two categories that helped boost revenues were the organization’s new farm and ranch assortments, which sold well this year, and paint. “Our new arrangement with Benjamin Moore, as well as strong increases in our own manufactured proprietary paint brand sales, helped offset the decline in winter weather related categories,” Heidemann added.
"With our support, retailers are continuing to invest in their stores. So far this year, they have implemented about 548,000 sq. ft. of the Destination True Value format, and with the projects currently scheduled for the last half of the year, we expect to achieve our goal of implementing 1 million sq. ft. for this year," Heidemann said.