HD Supply has reported net sales for its fiscal 2011 first quarter were $1.88 billion, an increase of 4.4% compared with $1.8 billion in the first quarter of fiscal 2010.
Net income for the first quarter, which ended May 1, 2011, was $164 million, compared with $202 million in the same quarter a year ago. Operating income for the first quarter of fiscal 2011 was $12 million, an improvement of $33 million compared with an operating loss of $21 million for the first quarter of fiscal 2010. Operating income is normally the weakest in the first and fourth quarters due to seasonality of the construction industry, the company noted.
In a prepared statement, company CEO Joe DeAngelo said: “We posted our fourth consecutive quarter of sales growth despite prolonged economic headwinds. The growth was driven by our associates’ intense focus on serving customers in our core markets, sales initiative execution in adjacent markets and specialization of activities to further penetrate specific customer segments.”
The Atlanta-based company experienced some improvement in its industrial and non-residential markets, DeAngelo said, but expected residential construction to remain challenging. An expansion of the White Cap division to Nashville brings that segment’s location network to 132 branches in 29 states.
“We now operate approximately 770 facilities across our business, and it is the first time we have increased our location count since 2007," DeAngelo noted. “At the close of the quarter, we completed the acquisition of RAMSCO to further strengthen our waterworks business in the Northeast. Furthermore, our strong liquidity allows us to continue to invest in organic growth initiatives, as well as potential bolt-on acquisitions.”