HD Supply Records $514M Loss in 2009

Sales declined 24% from fiscal year 2008.

HD Supply, Atlanta, GA, reported sales for the fiscal year ended Jan. 31, 2010, were $7.4 billion, down 24% from a year ago. The company recorded a loss of $514 million, compared to the prior year loss of $1.3 billion.

We Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.

\"\"

Financial performance declines in fiscal year 2009 were primarily a result of continued decline in the residential, commercial, and municipal construction markets, decline in the oil and gas markets, and unfavorable fluctuations in prices of commodities, such as steel, PVC, copper, and nickel. Volume declines were partially offset by positive impacts from efforts to gain new market share.

After a decline of 12.4% in 2009, driven largely by a 27.1% decline in new residential spending, total U.S. construction spending is expected to grow at a 6.2% compound annual growth rate from 2009 through 2013. This forecasted growth is attributed to a recovery in residential construction, beginning with a 5.4% increase in 2010 spending, and, after a projected 10.5% decline in 2010, robust growth in 2011 and beyond for non-residential construction.

During the third quarter of fiscal 2009, HD Supply announced it expected to close 25 branches and reduce workforce by about 400 employees. As of Jan. 31, the company has completed the closure of 15 branches with a headcount reduction of 230 employees. Additional reductions primarily will be focused in the Specialty Construction segment.

As of Jan. 31, HD Supply had 770 branches in the U.S. and Canada.

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.

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.