Atlanta-based HD Supply – No. 4 on Industrial Distribution's 2015 Big 50 List – reported its 2015 second quarter financial earnings on Wednesday for the period ended Aug. 2.
The figures were highlighted by a profit of $102 million, more than double Q2 2014's profit of $49 million (+127 percent). This follows HD Supply's Q1 in which it had a net profit of $242 million, compared to Q4 2014's net loss of $93 million.
The company reported Q2 2015 sales of $2.0 billion, a 6.7 percent increase over last year, and down from $2.2 billion in Q1.
"I am very pleased with the team's performance in our second quarter. We delivered 7 percent sales growth, 15 percent Adjusted EBITDA growth and approximately 60 percent Adjusted EPS growth despite a challenging environment," stated Joe DeAngelo, CEO of HD Supply. "We also took transformative actions this quarter including the announcement to sell our Power Solutions unit. We continue to focus on controllable execution that enables customer success, extends our differentiation and accelerates value creation."
Q2's operating income of $222 million was a 36.2 percent yearly increase, and up from Q1's $167 million.
HD Supply's Facilities Maintenance segment had sales of $733 million, up 6.9 percent year-over-year, and up from Q1's $635 million. The company's Waterworks segment gained 5.6 percent yearly sales to $702 million, up from Q1's $570 million. The Construction & Industrial - White Cap segment had a 10.8 percent yearly sales increase in Q2 to $431 million, also up from Q1's $388 million.
On July 15, HD Supply announced that it agreed to sell its HD Supply Power Solutions business unit to Anixter Inc. for a price of $825 million. The company said Wednesday that the transaction has now received regulatory approval and is expected to close during HD Supply's fiscal third quarter.
Net sales for May, June and July were $580 million, $638 million and $788 million, respectively. There were 19 selling days in May, 20 selling days in June and 24 selling days in July. Average year-over-year daily sales growth for May, June and July were 6.1 percent, 5.1 percent and 8.4 percent, respectively.
HD Supply said preliminary net sales in August were $646 million, which represents 5.9 percent yearly growth. There were 20 selling days in August. Preliminary August year-over-year average daily sales growth by business is Facilities Maintenance 9.1 percent, Waterworks 2.5 percent and Construction & Industrial - White Cap 9.5 percent.
The company anticipates net sales in the third quarter of fiscal 2015 to be in the range of $2.0 billion to $2,05 billion.
