HD Supply Holdings, Inc. reported net sales for the second quarter of fiscal 2014 ended August 3, 2014 of $2.4 billion, an increase of $210 million, or 9 percent, as compared to the second quarter of fiscal 2013. The second quarter performance represents the 17th consecutive quarter of year-over-year average daily sales growth. The company believes its sales performance represents growth of approximately 600 basis points in excess of its market growth estimate.

“I am very pleased with our execution in the second quarter,” stated Joe DeAngelo, CEO of HD Supply. “We delivered strong organic sales and earnings growth and remain cautiously optimistic about what seems to be improving end markets.”

Gross profit increased $65 million, or 10 percent, to $722 million for the second quarter of fiscal 2014 compared to $657 million for the second quarter of fiscal 2013. Gross profit was 29.5 percent of net sales for the second quarter of fiscal 2014, up approximately 10 basis points from 29.4 percent of net sales for the second quarter of fiscal 2013. Gross profit improvement was driven by execution of the company’s category management initiatives, partially offset by the competitive environment and mix of products and services.

Operating income increased $34 million, or 22 percent, to $186 million for the second quarter of fiscal 2014 compared to $152 million for the second quarter of fiscal 2013. Operating income as a percentage of net sales increased approximately 80 basis points during the second quarter of fiscal 2014 as compared to the second quarter of fiscal 2013. The improvement was primarily driven by a reduction in selling, general and administrative expenses as a percentage of net sales and improvements in gross margins.

Net income increased $120 million to $48 million for the second quarter of fiscal 2014 as compared to a net loss of $72 million in the second quarter of fiscal 2013.