Do it Best Corp. reports full-year sales gains
Indianapolis – Fort Wayne, Ind.-based Do it Best Corp. reported 2017 fiscal year sales of $3.2 billion, a 6.1% increase over fiscal 2016.
CEO Dan Starr announced the end-of-year sales-performance numbers during the shareholders meeting here in Indianapolis. The company also handed out rebates in excess of $100 million for the 14th consecutive year.
Despite the record total sales, Starr said the performance, while very good, fell short of “great.” He explained: “LBM sales were strong all year long, driven by both unit increases as well as pricing,” he said. “But warehouse sales, those sales that most positively impact our profitability, were just .4% above last year – essentially flat and well short of our planned sales increase.”
He added that the co-op’s mindset of pursuing excellence is paying off in improvements in a number of categories. A line review in the dynamic category of light bulbs has shown big results in the month of June, when year-over-year purchases were up 20% while margins were up almost 15%, as sales of LED bulbs are rising.
Starr also plugged the co-op’s The Color Bar paint program and pointed to investment in IT infrastructure. In 2014, the co-op invested a little over $14 million in technology. That number has steadily increased every year to about $18 and a half million dollars this last year, he said.
“We are not just a supplier of goods, but rather a true collaborative partner completely invested in helping you grow,” he told the audience of dealers at the Indiana Convention Center.
During the Annual President’s Address, Starr also shared examples of hurricane-induced retail heroism, including actions by Circle Hardware in Waco, Texas; Petersburg Hardware in Indiana; Ambridge Home Center of western Pennsylvania; and Niece Lumber of New Jersey – all cited for their support for the relief efforts.
Special mention went to Eric Hall, owner of Jed’s Hardware in Houston, who kept his store open in the aftermath of Hurricane Harvey. And Ken and Abby Adams, owners of Building Materials Do it Center in Turks & Caicos, struck by Hurricanes Irma and Maria.
“Like their fellow members, their first thought has been for their neighbors and the communities they serve,” Starr said.