True Value touts net margin increase in Q2

True Value Company released its second-quarter earnings report, which pointed to marginal net sales increases, but a major net margin improvement.

Revenue for the second quarter ended July 2 was $438.7 million, up 1.6%, or $6.8 million, over the year-ago period's.

Meanwhile, gross billings came in at $585.1 million, up 2.0% year-over-year.

Net margin pushed ahead 40.5% to $13.0 million, however. This was mainly driven by improved gross margin in advertising, freight-in expense and higher handled sales volume.

“Last year was the first full year of our significant reinvestment in the company,” said president and CEO John Hartmann. “Our Q2 net margin performance is a strong indication of the upward momentum from where we finished in 2015. We still have important work left to do, but we are clearly heading in the right direction.”

Comps also saw modest growth, with retail comparable store sales up 2.5% on increases in nine of 12 regions, led by Farm Ranch Auto & Pet, Lawn & Garden and Paint. Wholesale comparable store sales, on a gross billings basis, were down 0.2% in the quarter.