Home Depot, Inc. (NYSE: HD)
Shares of Home Depot fell 2% in premarket trading Tuesday after the company reported first-quarter revenue.
Sales missed analysts’ forecasts due to what the home improvement chain said was an unusually long winter that affected sales of typical spring products, such as patio furniture and lawn-mowers.
Many shoppers tend to buy gardening supplies to start home renovations in spring thus making it an important season for home improvement chain stores.
It is not common for Home Depot, the top US home improvement retailer, to post downbeat results. Nonetheless, it has had to join other retailers in the trend of losing customers to Amazon.com and other leading online stores in recent months.
HD Earnings & Outlook
Home Depot reported adjusted earnings per share of $2.08 for the first quarter of fiscal 2018. The EPS finished above the analyst consensus estimate of $2.06. In addition, quarterly earnings grew 24.6% year-over-year.
The company’s total revenue grew 4.4% year-over-year to $24,947 million. However, the revenue failed to beat the analyst consensus projection of $25,202 million.
During the quarter, comparable-store sales within the US increased 3.9%, while comparable-store sales in territories outside the country climbed 4.2%.
The retailer expects sales to grow by about 6.7%, alongside an increase of 5% in comparable-store sales. Further, it continues to expect its earnings per share to grow about 28% to $9.31 for the full year.
Home Depot CEO Comments
Home Depot Chief Executive Officer Craig Menear made the following statement on the company’s results: “We are pleased by the strength of our business despite a slow start to the spring selling season. Outside of our seasonal business, we had solid results in all markets and categories and are seeing strong momentum in all lines of business during these first few weeks of May. These trends, as well as a favorable housing and macroeconomic backdrop, give us confidence to reaffirm our sales and earnings guidance for fiscal 2018. I would like to thank our associates for their hard work and continued dedication to our customers.”
Home Depot, Inc Company Profile
The Home Depot, Inc is a home improvement retailer founded in 1978. The company runs The Home Depot outlets that stock a variety of décor products, building materials, garden and lawn products, as well as home improvement products.
It also engages in the provision of home maintenance, installation, as well as professional service programs to customers. The company also sells installation programs for water heaters, sheds, flooring, countertops, cabinets, roofing, furnaces, siding, windows, central air systems, and cabinet refacing.
In addition, Home Depot provides equipment and tool rental services. The retailer mainly serves professional remodelers/renovators, home owners, general contractors, property managers, handymen, specialty tradesmen like installers; and building service contractors.
As of January 2018, it operated a total of 2,284 stores that included 1,980 in the US including the territories of Guam, US Virgin Islands, and the Commonwealth of Puerto Rico; 122 in Mexico; and 182 in Canada. The headquarters of Home Depot Inc is located in Atlanta, Georgia. –Reuters