True Value pointed to unfavorable weather as a key factor for a sales decline in its first quarter.
True Value Company reported gross billings of $502 million for the first quarter ending April 1, 2017, down 1.6% from the same period a year ago. Revenue was $347.6 million, a decrease of 2.6%. Relative to the prior year, net margin remained essentially flat.
Wholesale sales, on a gross billings basis, were down 1.6% in the quarter. Retail comparable store sales were down 1.9% for the same period. Unfavorable weather patterns across the country led to a decline in retail traffic and drove lower volume at retail resulting in decreased warehouse replenishment, the company said.
Additionally, True Value’s international business continued to see strong growth with gross billings up 13% and handled sales up 18%.
Although weather trends affected quarterly sales, True Value asserted that it made progress in the execution of its multi-year strategic plan. “We continue to put the independent hardware dealer at the center of everything we do. Coming off a year of record growth including new stores and remodels, stores that have implemented the Destination True Value (DTV) format consistently see increased returns, experiencing comp store sales 200 basis points greater than overall retail comp,” said John Hartmann, True Value president and CEO.
