HD Supply sees sales and profits slide in Q2
HD Supply Holdings reported second quarter net sales fell 4.4% to about $1.6 billion.
The Atlanta-based company also reported a net income of $131 million for the second quarter, down 3% from a net income of $135 million for the second quarter of 2019.
Facilities maintenance sales 8.3%, to $761 million for quarter, as compared to $830 million during the same period a year ago.
Construction and Industrial sales slipped 0.3% to $793 million for the period compared to $795 million for the corresponding quarter last year.
Last month, HD Supply announced it had reached an agreement to sell its construction and Industrial “White Cap” business segment to an affiliate of Clayton, Dubilier & Rice for a purchase price of $2.9 billion in cash. White Cap has a focus on distributing specialty concrete and construction products and services contractors in North America. HD Supply expects proceeds of $2.5 billion from the sale.
HD Supply operates about 270 branches and 44 distribution centers in the U.S. and Canada.
The Bottom Line: Second quarter profits are down 3% to $135 million while sales are off by 4.4%.
What the CEO said: “Our highest priority remains the health and safety of our associates and our customers as we continue to support the operations and re-opening of living spaces, job-sites and work places,” stated Joe DeAngelo, chairman and CEO of HD Supply. “Our financial strength and steadily improving results reflect the strength of our team and their dedication to safely delivering best-in-class service.”
Company info: HD Supply’s full second quarter 2020 financial report is available here.