True Value builds on strategy

Chicago-based True Value Company reported gross billings of $494.9 million for the quarter ended Oct. 3, 2015, up 6.1% from the same period a year ago.

Revenue was $365.5 million, an increase of 4.2%. The company reported net margin of $3.3 million in the quarter.

“Our third-quarter results show that True Value is on the move, as we continue to focus on engagement, growth and efficiency,” said president and CEO John Hartmann. “The investments in areas such as brand awareness and national advertising, product assortments and customer service training are helping to continually drive our members’ growth and profitability.”

Destination True Value (DTV) comparable-store sales were up 5% year-to-date. Wholesale comparable-store sales, on a gross billings basis, were up 3.1% in the quarter and up 3.6% year-to-date. Retail comparable-store sales were up 3.1% in the quarter and 3.4% year-to-date with increases in 11 of the 12 regions of the country and in eight of the cooperative’s nine product categories, led by Hand & Power Tools, Seasonal, and Farm Ranch Auto & Pet.

The cooperative said it planned for a decrease in net margin in 2015 driven by investment expenses incurred in connection with the implementation of the company’s strategic plan and posted a net margin of $10.9 million year-to-date.

In the nine-month period, the company added more than 690,000 sq. ft. of retail space. In addition to expanding DTV and other relevant formats in its network, Busy Beaver Home Improvement Centers joined the co-op as one of its newest members. Founded in 1962, Busy Beaver today operates 16 full-line home improvement centers throughout Pennsylvania, Ohio and West Virginia.

“Welcoming members like Busy Beaver to the True Value family supports our strategic pillar of growth, and enhances our ability to better serve customers throughout the U.S. and strengthens the entire co-op,” Hartmann said.

The co-op includes about 4,500 independent retailer locations worldwide operating under the store identities of True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace and Induserve Supply.