Expanded farm, ranch, automotive and pet products enabled True Value to grow second quarter same store sales 2.2% and report broad-based strength at its nationwide network of 4,500 stores.
Revenue was $429.5 million, an increase of 4.5% from $411.2 million for the same period a year ago. The cooperative posted a quarterly net margin of $23.2 million, down 2.5% compared to $23.8 million from a year ago.
"In the second quarter, we saw a continuation of first quarter sales increases. 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," said president and CEO John Hartmann. "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 roll out of our new 'Color by Design' paint colorant systems, equipment, displays and collateral."
During the first half of the year, True Value continued to grow its square footage and member base. In the six-month period, the company added 428,000 sq. ft. of relevant retail space continuing its commitment to grow Destination True Value and other relevant retail space in its network. Conversions continued at an elevated pace with 34 new members signed to-date in 2014, for an estimated $11.9 million in new annualized handled business.