Home Depot Sales Surge, Extending Growth During Pandemic
May 18 2021 - 7:32AM
Dow Jones News
By Matt Grossman
Home Depot Inc. extended a streak of robust year-over-year sales
growth in the February-through-April quarter as a rise in demand
that began with the coronavirus pandemic continued into 2021.
Sales for the Atlanta-based home-improvement retailer climbed to
$37.5 billion in the three months ended May 2, from $28.26 billion
in last year's fiscal first quarter. Home Depot's profit rose to
$4.15 billion, or $3.86 a share, from $2.25 billion, or $2.08 a
share, a year earlier.
Wall Street analysts had been forecasting sales of $34.82
billion and profit of $3.02 a share, according to a FactSet
survey.
Chief Executive Craig Menear attributed the results to
unprecedented demand for home-improvement projects. On a
comparable-store basis, the company's sales rose 31%, including a
30% climb in the U.S.
Even as much in-person retail evaporated last spring, Home Depot
worked to keep its stores open, arguing that it should be
considered an essential retailer. As homebound Americans shopped
for basic supplies and took on household projects during the
pandemic's lockdowns, demand for products from house plants to
cleaning chemicals and kitchen appliances soared.
A booming housing market and federal support in the form of
enhanced unemployment benefits and stimulus checks have also
bolstered home-minded consumer spending.
Despite a broader economic downturn, that trend has lifted the
fortunes of Home Depot, a company whose focus on home projects had
meant its growth was usually linked to baseline economic growth.The
company's share price has risen more than 33% over the last year,
closing on Monday at $320.01. In pre-market trading, shares were up
2.5% Tuesday morning.
In the latest quarter, Home Depot's tally of customer
transactions rose to 447.2 million, from 374.8 million a year
earlier. The average ticket rose to $82.37, from $74.70 in last
year's first quarter.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
May 18, 2021 07:17 ET (11:17 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Home Depot (NYSE:HD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Home Depot (NYSE:HD)
Historical Stock Chart
From Apr 2023 to Apr 2024