Canadian retailer and distributor RONA reported third quarter revenues from continuing operations of $1.17 billion, down 4.3% from the same quarter last year.
The decrease stems from $18.2 million in lost sales due to store closures over the last 12 months and a 2.4% decrease in same-store sales, the company said.
Market conditions remained relatively unfavorable during the quarter, highlighted by a sharp drop in single-family housing starts in Canada, in particular in Quebec, where it declined by 31% during the quarter. The company noted that it earns close to 50% of its revenues in Quebec.
The company also highlighted $63 million in annualized cost-savings. The savings "has allowed us to quickly roll out measures that will have an ongoing impact on RONA’s financial performance. I am especially proud of the fact that we have reduced our inventory by a total of $114 million," said Robert Sawyer, president and CEO of RONA.
The company reported adjusted net income of $30.0 million compared to $33.5 million in the same period of 2012.