HD Supply — No. 4 on Industrial Distribution's 2017 Big 50 List — on Tuesday reported its fiscal results for its 2017 third quarter, which ended Oct. 29.
The figures showed continued strong growth for the company, led by a 7.5 percent increase in year-over-year (YoY) sales to $1.37 billion. That follows growth of 5.4 percent in Q2 and 5.2 percent in Q1. The company stopped including the performance of its recently divested Waterworks segment starting with Q2, as the transaction was was completed Aug. 1.
HD Supply's Q3 total profit of $452 million dwarfed the $60 million it had a year earlier, primarily due to gains from the Waterworks sales. Operating profit increased 14.5 percent YoY to $182 million, while gross profit increased 5.9 percent to $542 million but dipped 60 basis points. Adjusted total profit increased 58.5 percent to $149 million.
By business segment in Q3:
- Facilities Maintenance sales of $754 million increased 4.1 percent year-over-year, with adjusted EBITDA up 9.3 percent. Sequentially, sales were down 2.0 percent from Q2.
- Construction & Industrial sales of $617 million increased 11.8 percent year-over-year, with adjusted EBITDA up 13.4 percent. Sequentially, sales were up 5.7 percent from Q2.
The company said Hurricanes had a negative $3 million impact on Facilities Maintenance and a positive $1 million impact on Construction & Industrial.
By month in Q3:
- August sales were $436 million, with average daily sales up 6.7 percent year-over-year.
- September sales were $403 million, with average daily sales up 5.2 percent year-over-year.
- October sales were $531 million, with average daily sales up 10.0 percent.
Preliminary November sales were $372 million, with average daily sales up 9.8 percent year-over-year. Average daily sales growth at Facilities & Maintenance was approximately 4.3 percent year-over-year, and 16.4 percent at Construction & Industrial.
HD Supply is anticipating Q4 total sales of between $1.14 billion and $1.18 billion, with full year 2017 sales expected to be between $5.08 billion and $5.12 billion.
