True Value posted a rise in comps and revenue for its second quarter.
The company reported gross billings of $585.1 million for the second quarter ending July 2, up 2% from the same period a year ago. Revenue was $438.7 million, an increase of 1.6%.
The hardware cooperative posted net margin of $13 million, up 40.5% from a year ago. The net margin increase for the quarter was primarily driven by improved gross margin in areas including advertising, freight-in expense as well as higher handled sales volume, the retailer said.
Retail comparable store sales were up 2.5% in the quarter, with increases in nine of twelve regions of the country and in eight of the cooperative’s nine product categories, led by farm ranch auto and pet, lawn and garden and paint. Wholesale comparable store sales, on a gross billings basis, were down 0.2% in the quarter.
“Last year was the first full year of our significant reinvestment in the company,” said John Hartmann, True Value president and CEO. “Our second quarter net margin performance is a strong indication of the upward momentum from where we finished in 2015. We still have important work left to do, but we are clearly heading in the right direction.”
