HD Supply, Atlanta, launched its initial public offering, offering 53.2 million shares at $22 to $25 each, which places the company's value at $4.59 billion if it reaches the top end of its intended range. The company said in a release that it intends to use the net proceeds of the offering to redeem, repurchase or otherwise acquire or retire all $950 million of certain senior subordinated debt due 2021, a portion of its longer-term debt and to pay transaction fees and other expenses.
In an earnings release June 4, reported net sales for the fiscal 2013 first quarter (ended May 5) of $2.1 billion, an increase of $232 million, or 12.6%, as compared to 1Q fiscal 2012. Gross profit for the quarter increased by $75 million, or 14.3%, to $598 million compared to $523 million for the 1Q fiscal 2012. Gross profit as a percentage of net sales rose to 28.9% compared to 28.5%.