HD Supply Holdings, Inc., (Nasdaq: HDS) of Atlanta reported net sales of $2.5 billion for the third quarter of fiscal 2014, representing a 9 percent increase over the same period in 2013. HD Supply’s third quarter performance represents the eighteenth consecutive quarter of year-over-year average daily sales growth, according to the a company press release, which stated that the sales performance represents growth of approximately 600 basis points in excess of its market growth estimate.
“I was very pleased with our strong performance this quarter,” stated CEO Joe DeAngelo, in the press release. “We remain focused on controllable execution to deliver profitable growth in excess of our market growth estimate.”
During the quarter, HD Supply’s gross profit increased $64 million, or 10 percent, to $726 million, compared to $662 million for the third quarter of fiscal 2013. Gross profit was 29.2 percent of net sales for the third quarter of fiscal 2014, up approximately 10 basis points from 29.1 percent of net sales for the third quarter of fiscal 2013. According to the press release, gross profit improvement was driven by execution of the company’s category management initiatives, partially offset by the competitive environment and mix of products and services.
HD Supply reported an operating income increase of $42 million, or 26 percent, to $202 million for the third quarter of fiscal 2014 compared to $160 million for the third quarter of fiscal 2013. Operating income as a percentage of net sales increased approximately 110 basis points during the third quarter of fiscal 2014 as compared to the third quarter of fiscal 2013.
The distributor’s net income increased $9 million to $60 million for the third quarter of fiscal 2014 as compared to a net income of $51 million during the same period last year. According to HD Supply, the improvement in net income is attributable to higher operating income in the third quarter of fiscal 2014 as compared to same period in 2013. Net income per diluted share was $0.30 in the third quarter of fiscal 2014, versus $0.26 in the third quarter of fiscal 2013.
Breaking down performance by business unit, HD Supply’s facilities maintenance unit experienced a net sales increase of $50 million (8 percent), while its waterworks unit saw sales increase by $62 million (10 percent). The distributor’s power solutions unit posted a net sales increase of $30 million (6 percent), and its White Cap construction and industrial division posted an increase of $59 million (17 percent).
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