Personnel Updates
• 84 Lumber Co. promoted Mike McCrobie to Chief Procurement Officer.
• BMC Stock Holdings promoted Lisa Hamblet to Exec VP eBusiness and Pro Remodeling.
• Do it Best Corp. promoted Shane Burnworth to Merchandise Manager for Farm & Ranch. The company also hired Greg Fuller as Regional Sales and Business Development Manager (CA).
• Tractor Supply promoted Kurt Barton to Senior VP, CFO and Treasurer, taking over for retiring Anthony Crudele.
• World and Main kept the HR Department busy this month. Ned Finch is the new COO, Brenda Heffelfinger joins as Chief Marketing Officer and Nick Pendrous is in as CIO and General Manager of eCommerce.
Financial Focus
• Ace recorded a fourth straight year of record financial performance in 2016 (FYE 12.31.16) with $5.1 billion in revenue (+1.6%) and retailers reporting a 2.5% increase in same-store sales for the year.
• BMC Stock Holdings reported net sales (FYE 12.31.16) of $3.1 billion (+96.2%), a number resulting from the merger of BMC with Stock Building Supply.
• Builders FirstSource reported FYE 12.31.16 net sales of $6.4 billion, up 79% over 2015 thanks in no small part to the acquisition of ProBuild last summer. Excluding ProBuild, net sales were up 5.5%.
• Home Depot reported another record year (FYE 1.29.17). Sales increased to $94.6 billion (+6.9%) and comp sales were up 5.8%. The company expects to build six new stores and grow net sales by 4.6% in the coming year.
• Lowe’s had strong fourth quarter to beat analysts’ expectations. For the year (FYE 2.3.17), sales increased 10.1% to $65.0 billion, and US comp sales were up 5.1%. The company expects net sales to increase by 5% this fiscal year.
• Lumber Liquidators FYE 12.31.16 results saw net sales down 1.9% to $960.6 million and comp sales down 4.6%.
• Sears Holdings Corp. continues to sink. FYE 1.27.17 revenue was down 12% ($22.1 billion compared to $25.1 billion in 2015) and same-store sales were down 7.1% across the board.
• Sears Hometown and Outlet Stores isn’t doing much better. For 2016 (FYE 1.28.17), net sales decreased 9.5% to $217.7 million and comparable store sales were down 4.2% at Hometown and 4.9% at Outlet. The company reported a net loss of $47.7 million for the year, compared to 2015’s $42.2 million loss.
• True Value reported FYE 12.31.16 revenue of $1.5 billion (+1.1%) and growth in retail same-store sales of 2.5%.
• Universal Forest Products reported record net sales of $3.24 billion for FYE 12.31.16 (+12.2%).
Industry Insight
• 84 Lumber Co. plans to open 15 new stores in 2017.
• Lowe’s laid off 500 corporate employees, including 430 at corporate headquarters, continuing the bid to revise its staffing structure. The company also announced that 100 new corporate positions will be filled in the coming weeks.
• PPG is reportedly pursuing a deal to acquire Dutch rival Akzo Nobel NV.
• Ridgefield Supply Co. (Ridgefield, CT) is in the midst of building a new 34,000-sq-ft retail store, showroom and corporate office space.
Mergers and Acquisitions
• Beacon Roofing Supply acquired Acme Building Materials of Michigan.
• Fastenal Company agreed to acquire parts of Manufacturer’s Supply Company (Hudsonville, MI), a fastener distributor. The deal is expected to close this month.
• Patrick Lumber Co. acquired part of Mary’s River Lumber Co. (land, dry kilns and a remanufacturing plant), boosting processing capacity by 20%.
• Universal Forest Products acquired the assets of Quality Hardwood Sales a Nappanee, IN manufacturer and supplier of hardwood products. The deal marks UFPI’s entry into hardwood products.
Real Estate
• Orchard Supply Hardware plans to open nine stores in Florida this year.
• Rural King Supply purchased a closed Walmart in Hartland, MI and plans to transform it into Michigan’s second Rural King location.
• Sutherlands Lumber Co. will open a store in Springfield, MO in the coming months.
