Home Depot roars back in record Q2
After early selling-season weather disruptions, The Home Depot rebounded in the second quarter — in a big way.
The Atlanta-based retailer reported that total sales increased 8.4% to $30.5 billion for the quarter, crossing the $30 billion mark for the first time in any three-month period. The Street had predicted sales of $29.98 billion.
Domestic same-store sales rose 8.1%, the highest in more than two years. Total same-store sales increased 8.0%, the highest since the second quarter of 2015.
Net earnings increased 31.2% to $3.5 billion, or $3.05 per share, easily beating analysts’ estimates of $2.84 per share.
“We were very pleased with our record second quarter sales and earnings,” said Craig Menear, chairman, CEO and president. “Not only did our seasonal business rebound from the first quarter but our overall results exceeded our expectations.”
Based on the strong second quarter results, the company raised its guidance on performance metrics. It now expects sales will grow 7.0% for the year, with comp-store sales of about 5.3%.
Neil Saunders, managing director of GlobalData Retail, commented that Home Depot is poised for a strong year.
“Its management is strong, it is navigating both the digital and physical landscapes well, and it remains a go-to destination in the minds of consumers,” Saunders said. The comparative for the next quarter is tough, but thereafter things become slightly easier. As such, we expect this year as a whole to be a strong one for both the top and bottom lines.” (Click here for more analysis.)
The Atlanta-based retailer reported that total sales increased 8.4% to $30.5 billion for the quarter, crossing the $30 billion mark for the first time in any three-month period. The Street had predicted sales of $29.98 billion.
Domestic same-store sales rose 8.1%, the highest in more than two years. Total same-store sales increased 8.0%, the highest since the second quarter of 2015.
Net earnings increased 31.2% to $3.5 billion, or $3.05 per share, easily beating analysts’ estimates of $2.84 per share.
“We were very pleased with our record second quarter sales and earnings,” said Craig Menear, chairman, CEO and president. “Not only did our seasonal business rebound from the first quarter but our overall results exceeded our expectations.”
Based on the strong second quarter results, the company raised its guidance on performance metrics. It now expects sales will grow 7.0% for the year, with comp-store sales of about 5.3%.
Neil Saunders, managing director of GlobalData Retail, commented that Home Depot is poised for a strong year.
“Its management is strong, it is navigating both the digital and physical landscapes well, and it remains a go-to destination in the minds of consumers,” Saunders said. The comparative for the next quarter is tough, but thereafter things become slightly easier. As such, we expect this year as a whole to be a strong one for both the top and bottom lines.” (Click here for more analysis.)