Decent Q3 for North American home improvement

By NZHJ December 04, 2015 Industry News

The big North American DIY players have all been showing decent comparable sales increases as the year end approaches.

The Home Depot comps are decent...

The world’s #1 DIY retailer has reported sales of US$21.8 billion for the third quarter of fiscal 2015 (Q3), +6.4% on the previous year, with comparable sales +5.1% (+7.3% for the US stores).

Net earnings were US$1.7 billion, up US$0.2 billion on the previous year. By the way, these results include a pre-tax expense of US$20 million related to the company's 2014 data breach. Looking forward, The Home Depot anticipates year end FY2015 sales growth of around +5.7%, with comps approximately +4.9%.

But Lowe’s comps are better

Lowe’s meanwhile reports its Q3 FY2015 sales as US$14.4 billion (+5.0%), with comparable sales +4.6% (+5.0% for its US stores) and net earnings of $736 million (+25.8%!). Looking towards the year end, Lowe’s is expecting sales to be +4.5-5.0% with comps +4.0-4.5%.

Ace Hardware’s "best Q3 ever"

Ace Hardware has reported its Q3 performance as the best in company history. Consolidated sales were US$1.3 billion (+13.2%) and net income US$54.2 billion (+45.3%!). Same store sales (comps) reported for Q3 were +5.3%.

Ace has also just announced that its wholesale distribution network has expanded coast-to-coast with the formation of Emery Jensen Distribution. This new distribution arm was formed after the acquisitions of Emery-Waterhouse Company in 2014 and Jensen Distribution Services in January this year. Both will continue to operate independently under the Ace Wholesale Holdings umbrella at this time while Emery Jensen Distribution will service other key national accounts and retailers.

RONA turnaround continues

With CEO Robert Sawyer just named "Turnaround CEO of the Year" by Canadian Business magazine, RONA’s Q3 net income was CA$42.9 million (+11.5%), its adjusted EBITDA CA$90.0 million (+7.4%) and retail segment same-store sales +1.1%.

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