HD Supply Posts Strong Fiscal-Year Results

ATLANTA -- HD Supply, Inc. recently reported net sales for the fiscal 2010 fourth quarter ended January 30, 2011 of $1.7 billion, an increase of $107 million, or 6.7 percent, compared to the fourth quarter of fiscal 2009. Gross profit for the fourth quarter of fiscal 2010 increased by $54 million, or 12.

ATLANTA -- HD Supply, Inc. recently reported net sales for the fiscal 2010 fourth quarter ended January 30, 2011 of $1.7 billion, an increase of $107 million, or 6.7 percent, compared to the fourth quarter of fiscal 2009.

Gross profit for the fourth quarter of fiscal 2010 increased by $54 million, or 12.7 percent, to $480 million compared to $426 million for the fourth quarter of fiscal 2009. Gross profit for the fourth quarter of fiscal 2010 was 28.3 percent of net sales versus 26.8 percent of net sales for the fourth quarter of fiscal 2009. Operating loss for the fourth quarter of fiscal 2010 was $11 million, an improvement of $87 million compared to an operating loss of $98 million for the fourth quarter of fiscal 2009. Liquidity at the end of the fourth quarter of fiscal 2010 was $1.3 billion, an increase of approximately $426 million versus the end of fiscal 2009.

"In 2010, our associates' continued focus on our customers and our significant investments in the company to accelerate sales and growth momentum enabled us to gain market share and report year-over-year improved financial results, the first since 2007. Furthermore, our liquidity remains very strong, which allows us to meet our commitments and continuously invest in profitable growth," stated Joe DeAngelo, CEO, HD Supply. "These investments and our associates' outstanding performance make HD Supply the distributor of choice for our customers."

Full-Year Financial Results

Net sales for the full year of fiscal 2010 were $7.5 billion, an increase of $59 million, or 0.8 percent, compared to the full year of fiscal 2009. Gross profit increased by $81 million, or 4.1 percent, to $2.1 billion in fiscal 2010 versus gross profit of $2.0 billion in fiscal 2009. Gross profit for full-year fiscal 2010 was 27.8 percent of net sales versus 26.9 percent of net sales for full-year fiscal 2009. Operating income in the full year of fiscal 2010 was $32 million, an increase of $354 million compared to the full year of fiscal 2009, which included a $224 million pre-tax goodwill impairment charge. Excluding the goodwill impairment charge in fiscal 2009, adjusted operating income for fiscal 2010 increased $130 million compared to fiscal 2009.

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