Hardware Retailing, Dec, 2009
December 2008
Sears Holding Corp. continued to downsize its operations. The company, which operates Sears, Kmart and Sears Hardware stores, took a pretax charge of $101 million to cover the closing of 14 stores and impaired assets. As a result, the company reported a net loss for the quarter of $146 million (versus a $4 million gain in third quarter 2007) on revenue of $10.7 billion, which was down 7.7 percent from the same period the year earlier.
January 2009
Smitty’s Building Supply, a pro dealer serving Virginia builders and contractors for more than 34 years, filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code.
February
Blue Linx Holdings reported a net loss of $25.1 million for the three months ending Jan. 3. This was a smaller loss than the $34.1 million it recorded for the same quarter a year ago.
Home Depot reported a $54 million loss in the fourth quarter of 2008, compared to a net earnings gain of $671 million in the same period a year ago. For fiscal 2008, Home Depot generated $71.29 billion, or 7.8 percent less than in fiscal 2007, with same-store sales off by 8.7 percent.
Ace Hardware Corp. announced plans to open stores in Libya. The first two were slated to open this year in Tripoli, Libya’s capital. Future stores are planned for Benghazi City, Misurata and Zwara.
Builders FirstSource reported a net loss of $139.5 million, on top of the $23.8 million it lost in 2007.
Marvin’s Building Materials and Home Centers announced plans to open four stores in 2009.
84 Lumber Co. confirmed plans to continue to close stores throughout the U.S. Jeff Nobers, the company’s vice-president–marketing and public relations, confirmed that 84 Lumber closed units in Bolivar, Mo.; West Jordan, Utah; Lynchburg, Va.; Ocala, Fla.; Shelbyville, Ky.; Pocomoke City, Md.; Mr. Hope, W.Va.; New Oxford, Pa., and Circleville, Ohio.
March
Gleannloch Ace Hardware, in Spring, Texas, closed its doors. The store was opened in June 2007 by Gower Tally, who beat out more than 5,400 hopeful entrepreneurs in a nationwide “Dream Ace” contest and was awarded the $1 million Ace store.
Ace Hardware Corp. recorded sales of $3.86 billion for 2008, down 2.7 percent from 2007. Profits for 2008 totaled $85.8 million, a decrease of 1.3 percent from previous year’s net income. Total operating expenses for 2008 came in $11 million less than 2007 figures and $25 million less than 2006.
True Value Company reported revenue of $2.01 billion for the year ending Jan. 3, a decrease of 1.4 percent, or $27.9 million, compared to $2.04 billion for the prior year. Same-store sales were down 2.1 percent during fiscal 2008.
Handy Hardware Wholesale reported 2008 sales of $255 million, which represented an 8.8 percent sales increase over 2007 sales figures.
April
Tractor Supply Co., the country’s largest retail farm and ranch store chain, had first-quarter net sales of $650.2 million, an increase of 12.8 percent from $576.2 million in the prior year’s first quarter. The company opened 28 new stores, closed one store, and relocated another in the first quarter of 2009.
Builders FirstSource reported a net loss of $30.6 million for the three months ending March 31. That compares to a $15.8 million loss for the same three months a year earlier.
May
Ace Hardware Corp. announced that its net income for the first quarter of 2009 increased by 34.4 percent to $14.4 million. However, the co-op’s revenue for the quarter declined 2.2 percent to $851.2 million.
Home Depot reported stronger-than-expected quarterly results. The company reported first quarter net earnings of $514 million, compared to net earnings of $356 million in the same period in fiscal 2008.
Building Material Holding Corp. reported a 51 percent decrease in its revenue for the three months ending March 31. During that quarter, the company lost $45.2 million, compared with $33.9 million for the same quarter a year ago.
June
Stock Building Supply, under Chapter 11 bankruptcy protection, walked away from more than 100 leases it held on properties across the country. Stock was taken over by The Gores Group, a Los Angeles-based private equity firm. Under Chapter 11, the company is able to “reject” the leases.
The pro dealer Building Material Holding Corp. (BMHC), and all of its subsidiary companies, petitioned the U.S. Bankruptcy Court in Delaware on June 16 for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. BMHC’s filing came only a month after the national pro dealer chain Stock Building Supply filed for creditor protection under Chapter 11.
July
Tractor Supply Company reported sales for the second quarter increased 5.4 percent to $946.5 million from $898.3 million in 2008. However, same-store sales decreased 2.7 percent, and adjusting for one less selling day in the quarter due to the’ shift of the Easter holiday, same-store sales decreased by only 1.7 percent
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