The 2020 Mid-Year Economic Update_long

HD Supply Defers Planned Business Unit Separation

Materially changing market conditions caused by the COVID-19 pandemic have impacted the companys previously announced timeline to separate its Facilities Maintenance and Construction & Industrial businesses.
HD Supply Home Improvement solution store in South San Francisco Bay Area; HD Supply, Inc. is an industrial distributor in North America

HD Supply Holdings, Inc. (Nasdaq: HDS), one of the largest industrial distributors in North America, has announced that materially changing market conditions caused by the COVID-19 pandemic have impacted the company’s previously announced timeline to separate its Facilities Maintenance and Construction & Industrial businesses.

HD Supply remains committed to the separation of its two businesses and reaffirms that the strategic rationale for the separation is unchanged. The company continues its preparation to ensure that the two companies are ready for the separation when the markets sufficiently recover.

“As our industry reacts to COVID-19 and the large-scale effort to contain it, we remain focused on navigating the crisis, keeping our associates healthy, serving our customers, and protecting the financial stability of our company during these unprecedented times,” said Joe DeAngelo, chairman, president and CEO of HD Supply Holdings, Inc.

In response to market uncertainty related to the COVID-19 pandemic, DeAngelo, has voluntarily waived his base salary for the reminder of the year.

The company reported 2019 sales of $6.2 billion, up 1.6% from 2018. Profit of $452 million increased 14.7%. For the fourth quarter, total sales of $1.4 billion increased 4.2% year-over-year. Total profit of $78 million fell 15.2%.

 

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