Seasonal and paint lift True Value in Q3

True Value Company reported sales gains during the third quarter of 2014, lifted partly by seasonal and paint departments.

Net revenue of $350.6 million were up 1.0% over the third quarter of 2013. The company's gross billings came in at $466.4 million, up 2.4%.

Net margin fell 35.3% to $12.1 million, a decrease True Value blames on the timing of the Fall Reunion.

"From a profit perspective, our year-to-date planned decline is due to the shift in timing of our 2014 Fall Reunion and, as a result, the profit from hosting reunion will be reflected in the fourth quarter,” president and CEO John Hartmann said.

“As for the rest of the business, incremental gross margin from the sales increase was offset by higher inbound and outbound freight expenses and by our planned one-time expenses and retailer subsidies related to the roll out of our new “Color by Design” paint colorant systems, equipment, displays and collateral."

The company also noted the growth of its enterprise during the first nine months of 2014, during which time it added 679,000 sq. ft. of retail space and 56 new members. This amounts to an estimated $19.4 million in new annualized handled business.

Retail and wholesale comp-store sales were up 2.8% and 1.8%, respectively, in the quarter.

Potting soil, bagged concrete and cabinet hardware were some of the top sellers across all generations of True Value consumers, according to the co-op's True Value Rewards data.