ATLANTA-- HD Supply, Inc. today reported net sales for the fiscal 2011 third quarter ended October 30, 2011 of $2.1 billion, an increase of $201 million, or 10.7 percent, as compared to the third quarter of fiscal 2010. Gross profit for the third quarter of fiscal 2011 increased by $58 million, or 11.1 percent, to $580 million compared to $522 million for the third quarter of fiscal 2010. Gross profit for the third quarter of fiscal 2011 was 28.0 percent of net sales versus 27.9 percent of net sales for the third quarter of fiscal 2010.
Operating income for the third quarter of fiscal 2011 was $78 million, an improvement of $31 million compared to operating income of $47 million for the third quarter of fiscal 2010. The improvement in operating income reflects a 10.7 percent sales growth and a 110 basis point decline in operating expenses as percent of sales despite inflationary pressure, including medical costs, fuel costs and a resumption of the company's 401(k) match. Liquidity at the end of the third quarter of fiscal 2011 was $1.2 billion.
Loss from continuing operations before income taxes was $82 million in the third quarter of fiscal 2011, an improvement of $23 million ascompared to the third quarter of fiscal 2010. Loss from continuing operations for the third quarter of fiscal 2011 was $106 million, compared to a loss from continuing operations of $90 million for the third quarter of fiscal 2010.
Joe DeAngelo, CEO of HD Supply, stated, "The third quarter results mark the company's sixth consecutive quarter of year-over-year sales growth. Our accelerating growth and financial strength are a reflection of the exemplary performance by HD Supply associates and their successful collaborative efforts with our customers and suppliers."
DeAngelo added, "We are well-positioned for continued growth and improved financial performance through a sharp focus on executing our strategic plan, continuing significant investments in our leadership businesses, maximizing our operating efficiencies and making every customer experience exceptional."
