HD Supply reported net sales of $1.9 billion for the fiscal 2011 first quarter ended May 1, 2011.
HD Supplyreported net sales of
$1.9 billion for the fiscal 2011 first quarter ended May 1, 2011. Despite
unfavorable weather conditions and continued weakness in the construction
industry at the beginning of this year, net sales increased $88 million, or 4.9
percent, compared to the first quarter of fiscal 2010. Gross profit for the
first quarter fiscal 2011 grew by 5.2 percent, to $527 million compared to $501
million last year. Gross profit for the first quarter of fiscal 2011 was 27.9
percent of net sales versus 27.8 percent of net sales for the first quarter of
For the first time since 2008, operating
income showed positive numbers in the first quarter this year.Operating income
for the first quarter of fiscal 2011 was $12 million, an improvement of $33
million compared to an operating loss of $21 million at the same time last year.
The improvement in operating income reflects the 4.9 percent sales growth and a
90 basis point decline in selling, general and administrative expenses as
percent of sales despite inflationary pressure, including medical costs, fuel
costs and a resumption of the company’s 401(k) match.
continuing operations before income taxes was $145 million in the first quarter
of fiscal 2011, an improvement of $35 million as compared to the first quarter
of fiscal 2010. Consolidated loss from continuing operations for the first
quarter of fiscal 2011 was $165 million, compared to a loss from continuing
operations of $202 million for the first quarter of fiscal 2010.
“We posted our
fourth consecutive quarter of sales growth despite prolonged economic
headwinds. The growth was driven by our associates’ intense focus on serving
customers in our core markets, sales initiative execution in adjacent markets
and specialization of activities to further penetrate specific customer
segments,” saidJoe DeAngelo, CEO of HD Supply.
“We experienced some improvement in our
industrial and non-residential construction markets, but expect the residential
construction market to remain challenging. We expanded our White Cap geographic
footprint to Nashville,
which brings that segment’s location network to 132 branches in 29 states. We
now operate approximately 770 facilities across our business and it is the
first time we have increased our location count since 2007. Subsequent to the
close of the quarter, we completed the acquisition of RAMSCO, to further
strengthen our Waterworks business in the Northeast.”
For more on HD Supply’s First Quarter,
read the full press releasehere.