HD Supply 1Q16 Earnings Call Notes

Joe DeAngelo

Weather has been a consideration

“Weather has been a consideration for HD Supply year-to-date. We previously commented on our favorable comparison in February due to a mild 2016 versus 2015. Flooding in Texas, late snow in certain areas like Colorado and an unusually cool start to spring in 2016 were considerations impacting April and May performance.”

No fundamental changes in our end markets

” There has been no fundamental changes to our end market perspectives since our call in March. We expect the residential construction to increase to mid single digits, non-residential construction to increase in mid single digits, water infrastructure to be down low single digits to up low single digits and for the MRO market to remain stable increasing 1% to 2%.”

Will Stengel

Commodity cost inflation is a short term gross margin headwind

“Commodity cost inflation is another short term gross margin headwind in this environment.”