The Home Depot this morning reported sales of $23.2 billion for the third quarter of the current fiscal year, well outperforming expectations – with both bad weather and good weather adding to sales.
Those sales represent a 6.1 percent increase from the third quarter a year ago. Comparable stores in the huge, Atlanta-based chain saw sales for the quarter rise 5.5 percent. Comparable Home Depot stores in the United States were up 5.9 percent.
Net earnings for the quarter were $2.0 billion were up 18 percent from the $1.7 billion in earnings reported during the same period a year ago.
Company officials said they are not concerned about prospects for the coming year, even if a deeper national deficit leads to higher mortgage rates. Carol Tome, chief financial officer for the company, told Fortune magazine: “Elections come and go and we are always focused on our customers and doing the right thing for our customers.”
During a conference call with analysts, Craig Menear, the company’s chairman, CEO and president, said he was pleased with the results.
“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, in a statement today.
Hurricane Matthew – especially the repairs and rebuilding in its aftermath – contributed to consumer demand during the quarter. Good weather otherwise added to the days when home improvement could be done.
During a conference call, Menear said that online sales, although they represent less than 6 percent overall, continue to surge: During the quarter, online sales grew 17 percent. “Over 40 percent of our online orders are picked up in the store, which we view as a positive sign of our physical store’s continued relevance with our customers.”
The company Tuesday did not change its projections for the year – and some analysts were disappointed that the solid quarter didn’t lead to a rosier prognosis. But Home Depot officials stuck with their previous guidance, suggesting that fiscal 2016 sales will be up about 6.3 percent, while comparable store sales will be up approximately 4.9 percent.
