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Home Depot Q2 Same Store Sales Missed Estimates

By John F. Heerdink, Jr.

Reportedly, The Home Depot, Inc. (HD) reported Q2 earnings ended Aug. 1, with same-store sales coming in slightly short of market estimates, as fewer people visited its shops to buy items for do-it-yourself projects. U.S. same-store sales were up just 3.4% in the latest quarter, compared with a 25% jump in the year-ago period. Total same-store sales rose 4.5%, short of more than 5% growth anticipated.

Earnings per share of $4.53 were reported versus $4.44 expected, revenue climbed 8.1% to $41.12 billion from $38.05 billion a year earlier and versus $40.79 billion expected. Net income increased to $4.81 billion from $4.33 billion, a year earlier. The company informed that the kitchen and bath and lumber were its two strongest departments, while sales in paint, hardware, and indoor and outdoor garden were negative on a year-over-year basis.

The company did not provide a complete outlook for 2021 due to uncertainty around the Covid pandemic and the spreading delta variant. CFO Richard McPhail informed during an earnings conference call that during the first two weeks of August, same-store sales in the U.S. have been in line with trends in the second quarter.

“Customer engagement and demand for home improvement is healthy. Housing remains strong, and we see a supportive environment for home improvement spending as we look out over the next several years,”  stated CFO Richard McPhail 

The Home Depot, Inc. (HD) is the world’s largest home improvement retailer with retail stores all across North America. The Home Depot sells building materials and home improvement products, as well as lawn and garden supplies, and provides installation, home maintenance, and professional service programs. To learn more about The Home Depot, Inc. (HD), and to continue to track its progress please vista Partners The Home Depot, Inc. Coverage Page

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(Read Original Story: Home Depot shares tumble despite earnings beat, retailer rang up fewer customers as DIY trends weaken in CNBC)


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