Home Depot beats Street in Q3
The Home Depot on Tuesday reported sales and earnings for its third quarter that exceeded forecasts.
The world’s largest home improvement retailer saw its net income increase 14.1% to $1.97 billion, from $1.73 billion in the same quarter last year.
Net sales jumped 6.1% to $23.2 billion, compared to $21.8 billion in the same quarter last year.
Comparable-store sales in the U.S. increased 5.9%.
“We experienced balanced sales growth in the quarter driven by an increase in both ticket and transactions, and our continued focus on productivity drove double-digit earnings-per-share growth,” said Craig Menear, chairman, CEO and president, Home Depot.
Third quarter sales to the pro customer grew faster than sales to the DIY customer.
And online sales generated double-digit growth — more than 17%, representing 5.6% of Home Depot's overall sales.
At the same time, the company said it continues to expect growth in the maintenance, repair and operations segment, through its acquisition of Interline — a $1.6 billion deal that closed in August 2015.
Looking ahead, the company said it continues to expect sales for the year to finish ahead 6.3%, with cups up about 4.9%. The company raised its guidance for diluted earnings-per-share — now expecting 15.9% growth to $6.33.
At the end of the quarter, the company operated 2,276 stores, up from 2,275 from the prior quarter.
Dick’s Sporting Goods tops Q3 estimates but gives weak guidance
Dick's Sporting Goods Inc. on Tuesday reported better-than-expected sales and earnings for its fiscal third quarter but tempered its good news with a weak outlook for the fourth quarter.
Dick’s posted net income of $48.9 million for the quarter ended Oct. 31, up from $47.2 million in the year-ago period.
On a per-share basis, the Coraopolis, Pennsylvania-based company said it had profit of 44 cents. Earnings, adjusted for non-recurring costs, were 48 cents per share.
Revenue rose 10.2% to $1.81 billion in the period. Consolidated same-store sales rose 5.2%. Online sales in the quarter represented 9.6% of total net sales, compared to 8.0% last year.
The company’s guidance was worse than expected. For the current quarter ending in January, Dick's expects its per-share earnings to range from $1.19 to $1.31. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.32.
As of October 29, 2016, the company operated 676 Dick’s Sporting Goods stores in 47 states, 74 Golf Galaxy stores in 29 states, and 27 Field & Stream stores in 13 states.
On Nov. 2, Dick’s acquired Golfsmith International Holdings for $43 million in connection with Golfsmith's Chapter 11 proceeding. The purchase price was approximately $43 million, of which $32 million is related to inventory. Intellectual property includes the name "Golfsmith", as well as Golfsmith's domain names, owned trademarks and customer information.
Finish Line exploring alternatives for its specialty banner
It’s official: The Finish Line considering selling its specialty running store chain.
The company announced that it is currently exploring strategic alternatives for its JackRabbit division (previously known as Running Specialty Group). The segment includes 70 specialty running stores in 17 states, such as Brooks, ASICS and Hoka One One.
Finish Line said that while the alternatives could include a potential sale of JackRabbit, there is no definitive timeline or assurance that a sale will occur.
The retailer said it expects to record a non-cash goodwill impairment charge in its third quarter of approximately $44 million as a result of the exploration of the alternatives.