True Value Company reported a slight rise in revenue and comps, while strategic plan investments impacted a net loss, in the first quarter.
The company reported gross billings of $510.2 million for the first quarter ending April 2, 2016, up 3.3% from the same period a year ago. Revenue was $356.8 million, an increase of 0.8%.
Wholesale comparable store sales were up 1.7% in the quarter. Retail comparable store sales were up 0.7% in the quarter, with increases in eight of twelve regions of the country and in six of the cooperative’s nine product categories, led by lawn and garden, farm ranch auto and pet, and hardware, lumber and building. In areas of the country where there was a mild winter, net comp store warehouse revenue decreased due to lower sales in snow and heating related products, the cooperative said. This decrease was partially offset by favorable lawn and garden product sales as a result of the mild winter.
True Value also noted that its first quarter international sales were up 16%, while e-commerce transactions were up 46%.
The cooperative posted a net loss of $5.4 million, compared to a net loss of $1.7 million from a year ago. The net margin decrease was driven by planned investment expense incurred in connection with the execution of its strategic plan, according to the company.
“Transformation requires investment and we are reinvesting significant resources to build a better True Value— for today’s members, today’s customers and for the future,” said John Hartmann, president and CEO, True Value. “Our strategic plan is driving positive change, while we continue to make progress in key areas such as assortment productivity, brand building and core operational efficiency.”