HD Supply’s Second Quarter Sales Down 4.4%

Log In

HD Supply’s Second Quarter Sales Down 4.4%

Sales in the construction and industrial business — the division that HD Supply is selling to a private equity buyer for $2.9 billion — decreased 11.7% in 2Q.
HD Supply Holdings
Author
Date

HD Supply Holdings Inc. (NASDAQ: HDS), Atlanta, Georgia, reported sales of $1.6 billion for the second quarter of fiscal 2020 ended Aug. 2, a 4.4% decrease compared to the second quarter of fiscal 2019. Net income decreased 3% to $131 million in the period.

Construction and industrial, aka White Cap, sales decreased 0.3% to $793 million during the quarter. Adjusted EBITDA increased 11.6% to $106 million.

Facilities maintenance sales decreased 8.3% to $761 million during the quarter. Adjusted EBITDA decreased 11.4% to $132 million in 2Q.

On Aug. 10, HD Supply agreed to sell its White Cap business to an affiliate of Clayton, Dubilier & Rice for $2.9 billion. Net proceeds from the sale are expected to be approximately $2.5 billion after taxes and transaction costs. The transaction is expected to close in October.

Joe DeAngelo, chairman and CEO of HD Supply, didn’t comment on the sale in Wednesday’s press release but did issue another statement on HD Supply’s performance during another period that was impacted by the coronavirus crisis.

“Our highest priority remains the health and safety of our associates and our customers as we continue to support the operations and re-opening of living spaces, job-sites and work places,” he said. “Our financial strength and steadily improving results reflect the strength of our team and their dedication to safely delivering best-in-class service.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.