For True Value, quarterly loss is an investment

True Value Company's net loss widened in its fist quarter, but it's all part of the transformational game plan, according to the Chicago-based co-op.

“Transformation requires investment and we are reinvesting significant resources to build a better True Value—for today’s members, today’s customers and for the future,” said president and CEO John Hartmann. “Our strategic plan is driving positive change, while we continue to make progress in key areas such as assortment productivity, brand building and core operational efficiency.”

Gross billings of $510.2 million were up 3.3%, but revenue only budged 0.8% to a total of $356.8 million.

Though a net loss was expected and planned for, the co-op's net loss of $5.4 million widened from last year's net loss of $1.7 million. The net margin decrease was driven by planned investment expense related to the company's strategic plan.

Wholesale comparable store sales rose 1.7%, while retail comparable store sales went up 0.7%. Increases were led by Lawn & Garden, Farm Ranch Auto & Pet, and Hardware, Lumber & Building. In areas of the country where there was a mild winter, net comp store warehouse revenue decreased due to lower sales in snow and heating related products. This decrease was partially offset by favorable lawn & garden product sales as a result of the mild winter.



Additionally the DTV format continued to provide returns for members. DTV comparable store sales were up 1.3% for the quarter.