Soft sales at True Value in Q1

True Value Company reported gross billings of $502 million for the 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. This drove lower volume at retail resulting in decreased warehouse replenishment.

Despite softer sales, True Value achieved net margin consistent with the prior year reflecting improved product rates. In addition, the company delivered on its commitment to reduce member transportation rates by 25 basis points.

Although weather trends affected quarterly sales, True Value pointed to 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 President and CEO John Hartmann.

During the first quarter, the company added 534,930 square feet of relevant retail space in the form of the DTV format.

Additionally, True Value’s International business continued to see strong growth with gross billings up 13% and handled sales up 18%.

The True Value co-op includes about 4,400 independent retailer locations.