Richelieu Hardware Q3 sales higher
Richelieu Hardware (RCH: TXS), with sales in both U.S. and Canada markets, reported third quarter increases highlighted by a focus on supporting customers with a range of products, and the opening of two U.S. distribution centers.
The Montreal-based company reported overall net sales increases of 20.0% to $373.3 million from $311.2 million in the previous third quarter. Net earnings stood at $38.7 million, or $0.69 per diluted share, up 38.0%.
Richelieu noted sales of $318.8 million in the manufacturers market, compared to $244.6 million for the third quarter of 2020, an increase of $74.2 million or 30.3%, of which 24.5% was from internal growth and 5.8% was from acquisitions.
Sales to hardware retailers and renovation superstores, it pointed out, stood at $54.5 million, down $12.1 million or 18.2% over the third quarter of 2020.
In the U.S. market, the company’s sales totaled $102.1 million, compared to $80.6 million for the third quarter of 2020, up $21.5 million or 26.7%.
In the Canadian market, Richelieu recorded sales of $246.2 million, an increase of $43.2 million or 21.3% over the third quarter of 2020.
The Bottom Line: Richelieu sales climbed 20% in Q3 to just over $373 million. The company opened two new distribution centers in the third quarter.
What the CEO said: “Richelieu has delivered another strong quarterly performance. Growth in the third quarter contributed to increase sales for the first nine months to over $1 billion. We continued to focus on supporting our customers by providing value-added multi-channel service and an incomparable range of products through our network of ‘one-stop-shop’ centers - as well as online,” said Richard Lord, president and CEO.
“Since the beginning of the year, we have pursued an active expansion strategy with the closing of five acquisitions in North America, for potential sales of $75 million on an annual basis, and opened two additional distribution centers in the United States,” Lord added.
Company info: Click here to read the full third quarter financial report from Richelieu Hardware.