True Value Company saw its comps edge up in the second quarter, as the hardware cooperative said it progressed with its multi-year strategic growth plan.
Total retail comparable store sales were up 0.9% for the quarter ending July 1, 2017, with increases in seven of twelve regions of the country and in six of the company’s nine product categories. Targeted initiatives and investments led to a 22% increase in visits to TrueValue.com and a 19% increase in online sales. Destination True Value format comparable store sales were up 1.8% in the quarter and 1.1% year-to-date.
Gross billings of $579.7 million for the quarter were down 0.9% or $5.4 million from the same period a year ago. Revenue was $430.4 million, a decrease of 1.9% or $8.3 million. Wholesale sales, on a gross billings basis, were up 0.1% for the same period.
The company posted net margin of $16.7 million in the second quarter, up 28.1% from a year ago. The increase in net margin was primarily driven by good gross margin rates and tight monitoring of overhead expenses, the company said.
“We are now in the third year of our multi-year strategic plan and I’m very encouraged by the strong advancements we are making,” said John Hartmann, president and CEO, True Value. “After a record-breaking year for ground-up and remodeled stores in 2016, we have continued to make good progress in building a stronger business. Our retailers are benefiting from strategic initiatives in areas such as omnichannel, retail excellence and product assortments that improve the customer experience and generate sales growth. And we are doing all of this at the same time as delivering strong net margin expansion. Looking forward, we will continue to look for ways to accelerate our strategic growth plan to ensure that True Value is helping our stores to remain relevant in their communities and supporting their long-term growth, profitability and independence.”