RONA up in third quarter on acquisitions
RONA, one of Canada’s largest big-box home channel retailers, saw earnings rise to $59.4 million Canadian dollars (US$64 million), up 5.9 percent compared with C$56.1 million in the year-ago period. Sales were up 6.7 percent to C$1.35 billion compared with C$1.27 billion last year.
The higher sales were attributed to growth in acquisitions and new store openings. The company recently acquired business from Noble Trade, Curtis Lumber and Mountain Building Centres. Additionally, earnings growth in the third quarter, as well as in the second quarter, have helped to offset a weak first quarter, the company said in a statement. The company saw a difficult first quarter due to adverse weather conditions.
In a statement, the retailer said although the American economy is seeing a “major correction” in the real estate market, “the situation is very different in Canada, where all of RONA’s sales are based. The drop in housing starts is much less pronounced than in the United States and resales are still climbing.”
Based in Boucherville, Quebec, RONA operates a network of 673 franchise, affiliate and corporate stores.