True Value Company reported strong results in the second quarter, with a revenue boost of 4.5% driven largely by an expanded assortment of farm, ranch, automotive, pet, seasonal and plumbing products.
Reported revenue for the co-op was $429.5 million for the three months ended June 28, compared with $411.2 million year-over-year.
"In the second quarter, we saw a continuation of first-quarter sales increases," said president and CEO John Hartmann. "In fact, on a year-to-date basis, we had revenue increases in all regions of the country and in all 10 of our product departments. From a profit perspective, the incremental gross margin from the sales increase was offset by higher inbound freight expenses and our planned one-time expenses and retailer subsidies related to the rollout of our new 'Color by Design' paint colorant systems, equipment, displays and collateral."
Other metrics of note included comparable-store sales, which were up 4.2% in the quarter and 4.8% year-to-date. The quarterly net margin came in at $23.2 million, down 2.5% from last year's $23.8 million.
Gross billings sales from new stores made up for lost sales from closed stores by $10.7 million for the six-month period ended June 28.
True Value also noted its addition of 428,000 sq. ft. of retail space, as well as the addition of 34 new members in 2014.