Page 35 - HW MARCH 2020

global eyes
terms of year-end growth as its top
line for the final quarter rose 6.1% to US$1.5 billion,
in contrast to its US Q4 comparables which were a moderate +2.1%.
Its top line for the year grew 6.2% to US$6.1 billion while US comparables were
also moderate at +2.8% for FY 2019.
Acehardware.com however was a clear winner among the big DIY
players, with Q4 online revenues +52% and +59% for the year!
“I’m delighted to report record revenue that exceeded $6 billion for the first time
in Ace’s history,” says John Venhuizen, President and CEO.
“Our best-ever sales and dividend payments to shareholders were
largely driven by 208 new store openings across the globe, a 59% increase in our acehardware.com
business and solid same store sales growth of 2.8% from our very talented local Ace owners across the U.S.”
“Our Ace Wholesale Holdings and Ace Ecommerce Holdings (The Grommet) businesses however, struggled to achieve their revenue targets. Both businesses posted large losses in 2019.
“While our plans call for significant improvements in these businesses going forward, the facts are that they were a meaningful drag on an otherwise stellar year for the Company.”
“We expect the Ace Wholesale Holdings business to recover substantially in 2020 and to achieve operating profitability in 2021.
“The recovery of The Grommet business, however, is likely to take longer. As such, we were required to take a non- cash goodwill impairment charge of $8.5 million in the fourth quarter of 2019 to write-down the value of our investment in The Grommet.”
www.acehardware.com
Homebase reports impressive turnaround
TWO YEARS SINCE Wesfarmers divested itself of its failed UK venture to Hilco Capital, Homebase can now boast some impressive financial year end numbers.
Indeed, last month, Homebase announced that it had returned to profitability ahead of its three-year plan with a £3.2 million EBITDA for 2019 compared to the 2018 loss of £114.5 million.
Like for like sales were +2.6% and Gross Margin +2.8%, on top of a positive net cash balance for the year to 29 December of £17 million, with “further improvements expected in 2020”.
Comprising some 240 stores two years ago, nearly all 164 remaining stores are now profitable says the company.
All of which means, 18 months earlier than planned, that Homebase is now
in a position to seek completion of
the Company Voluntary Arrangement (CVA) agreed with creditors back in August 2018.
The CVA was due to end August 2021, however, due to the retailer’s turnaround performance, Homebase has now proposed to conclude the CVA ahead of schedule, in early April this year.
CEO, Damian McGloughlin, is justifiably pleased with the result: “Eighteen months into our turnaround, we’re extremely proud of what our team has achieved, working hard with our
partners to return to profit and lay solid foundations for growth.”
Key markers for the year just reported included reducing Homebase’s cost
base by no less than over £180 million, broadening its product offering by more than 3,000 new products, investing £10 million in stores, including new kitchen showrooms, integrating Bathstore concessions (on top of 23 standalone Bathstores) and home furnishing departments, as well as further improving Homebase.co.uk (sales +50% for the year!).
Plans for this year include further broadening of Homebase’s home improvement and garden categories, more in-store arrangements with well-known external brands, new
store formats including trialling two smaller stores branded DECORATE
by Homebase (colour advice, paint and flooring), adding a marketplace of 18,000 online products to Homebase.co.uk with a next/named day delivery promise,
and more training including external specialist qualifications for staff.
Homebase CFO, Andy Coleman, says: “Having returned to profit ahead of plan, we are very well set to undertake further investment in our stores, ranges, the online business and our teams.
“Customer response to the changes we’re making is extremely encouraging, and 2020 will be a very exciting year for our team and customers.”
www.homebase.co.uk
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MARCH 2020 | NZHJ 33