Fastenal sees sales, earnings rise in Q3
Winona, Minn.-based construction and industrial supply company Fastenal reported net third-quarter earnings of $72.9 million, up 17.3 percent from $62.14 million in the same period last year. Net sales were $625 million, an increase of 17.1 percent compared with net sales of $533.8 million in the year-ago period.
Fastenal opened several new stores over the past three quarters, with 140 new locations in the first nine months of the year. In total, the company operates around 2,300 stores in the United States.
Still, Fastenal reiterated plans to move away from using new stores as a primary driver of income growth.
“For most of the last decade, we have used store openings as the primary growth driver of our business, opening approximately 14 percent new stores each year,” the company said in a statement. Future plans include adding more outside sales personnel to existing stores, while trimming store growth to around 7 percent to 10 percent per year.
The company has set a goal of growing the average per-store sales rate to $125,000 per month in the five-year period from 2007 to 2012.
In spite of the strong performance, Fastenal said it saw negative impacts from rising fuel prices. Most notably, fuel costs rose to $3.7 million per month in the third quarter compared with $2.4 million per month in last year’s third quarter.
Lumber Liquidators to sponsor Pro Bowlers
Hardwood flooring retailer Lumber Liquidators signed a “multi-million dollar” sponsorship deal with the Professional Bowlers Association, according to the Puget Sound (Washington) Business Journal.
Lumber Liquidators plans to sponsor six bowlers as part of the deal, including Patrick Allen, Tommy Jones, Rhino Page, Parker Bohn III, Michael Fagan and Brian Kretzer.
The company will also place its name on the Bowlers Association logo. The Lumber Liquidator sponsorship replaces the association’s former sponsor, Denny’s.
Lumber Liquidators currently has a heavy presence on the association’s Web site, and plans are in the works for other sponsored events and tours, such as the Lumber Liquidators PBA Tour 2008-09; the Baltimore Lumber Liquidators Shark Championship; and the North Brunswick, N.J. Lumber Liquidators U.S. Open.
Based in Toano, Va., Lumber Liquidators has more than 135 stores in the United States.
115-year-old hardware store to close
Puopolo Hardware, which has been operating as a hardware business in Weston, Conn., since 1893, is expecting to close its doors in the next month.
Store owner Paul Puopolo, the fourth owner of the business, announced in April that he was planning to retire and would close the store within about six months. Puopolo said the community is devastated by the loss of this long-standing business.
“People are struggling with the idea of losing a legacy business like this one,” Puopolo said, pointing to brands like Cabot, Purdy and many others. “There was a very broad and deep inventory of branded products that the community came to anticipate would be readily available here. They’re going to miss that.”