True Value reports strong third quarter
True Value Co. reported revenue of $445.7 million for the quarter ending Oct. 1, an increase of 3.6% from $430.2 million for the same period a year ago. The cooperative posted a quarterly net margin of $18.1 million, an increase of 3.4% versus $17.5 million one year ago.
“I am happy with our third-quarter performance,” said president and CEO Lyle Heidemann. "Our members’ retail sales were up 4.1%, with all departments running an increase and all regions of the country performing well. Our core wholesale comp store sales were up 3.1% in the quarter. Both measures were aided by heavy rainfall in the Northeast.”
For the nine-month period, True Value reported revenue of $1.423 billion, an increase of 2.6% from $1.386 billion for the same period a year ago. The 2011 year-to-date net margin was $47.9 million, down 7.5% or $3.9 million, from $51.8 million one year ago. Lower warehouse sales and higher fuel costs drove the profit reduction.
“Not only are our financial results on plan for the year, strategically, we continue to invest in our retailers’ store remodels and new stores," Heidemann said. "So far this year, 788,000 sq. ft. of retail space has been converted to our recommended retail format, Destination True Value (DTV), up 13.5% from 694,000 sq. ft. at this time last year. Retail sales of DTV format stores continue to exceed all other stores by 9%.”
True Value, headquartered, in Chicago had sales of $1.8 billion in 2010. The True Value cooperative includes approximately 4,700 independent retailer locations worldwide.