Do It Best reports drop in full-year sales
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Member-owned hardware store cooperative Do it Best on Wednesday reported a 4% decline in year-over-year sales for fiscal year 2024 as the home improvement industry experienced decreased demand amid higher interest rates.
The privately held, Fort Wayne-based company reported total sales of nearly $4.6 billion, down from $4.8 billion in 2023. The company had projected flat sales for fiscal year 2024, according to a news release.
The company said less-than-expected demand and heightened competition affected sales. Last year, the company noted, the total home improvement market declined by 1.8%, according to the Home Improvement Research Institute.
“Even in a difficult market, we achieved total sales of nearly $4.6 billion,” Do It Best President and CEO Dan Starr said in the release. “Although this was 4% below the previous year, it demonstrates our ability to outperform the market in less-than-favorable conditions.”
Other hardware retailers experienced similar market pressures. In August, The Home Depot and Lowe’s each reported a decline in second-quarter sales and projected full-year sales declines of up to 4%.
Do it Best reported a 20% growth in membership over the past year and a series of initiatives that it expects will produce long-term benefits, including software improvements, AI-driven e-commerce enhancements and website upgrades. The company in May merged with Minnesota-based United Hardware Distributing Co.
“Our disciplined focus on cost of goods, expense management, and strategic investments has positioned us for continued growth,” Starr said in the news release. “We’re leveraging data and technology to drive profitability for our members for years to come.”
Do It Best on Wednesday also said it was issuing the second highest dividend in company history, returning more than $159 million to shareholders.