Atlanta-based HD Supply — No. 4 on Industrial Distribution's 2015 Big 50 List — reported its 2016 first quarter fiscal results on Tuesday, highlighted by continued strong year-over-year sales gains and an overall net loss due to debt elimination and a large tax benefit last year that the company didn't have in 2016.
The company posted Q1 sales of $1.78 billion, up 7.2 percent year-over-year. The company took a net loss of $14 million, compared to a profit of $242 million a year earlier. The drastic year-over-year profit swing was due to a $115 million loss incurred for extinguishing outstanding debt, and a $189 million tax benefit in Q1 2015 that wasn't in effect this year. HD Supply's Q1 2016 gross profit increased 8.9 percent to $50 million, while operating income increased 14.1 percent to $178 million.
HD Supply's Facilities Maintenance Q1 sales increased 6.6 percent to $677 million, Waterworks sales increased 6.1 percent to $605 million and Construction & Industrial — White Cap sales increased 9.8 percent to $447 million.
Here's what each unit's year-over-year daily sales growth was during Q1 2016 and May:
In late April, HD Supply announced the sale of its Interior Solutions segment to to Carlsbad, CA-based Interior Specialists Inc. for an undisclosed amount. HD Supply said the transaction was completed May 31.
The company said its preliminary May sales were $609 million, with year-over-year daily sales growth up approximately 4 percent. HD Supply said May sales were negatively impacted by about 100 basis points due to weather.
HD Supply said that despite a slow start to Q2, it expects sales to be in the range of $2 billion to $2.05 billion, with year-over-year growth to be up 5.0 percent at the midpoint. For the full year 2016, it expects end markets to be up approximately 3 percent.