By
Godfrey Benjamin
November 15th, 2023
The impressive earnings report has uplifted Home Depot’s stock which climbed 2% in pre-market trading to $378.50. As the market opened, the stock is trading at $387.52 (+4.43%).
America’s largest home improvement retailer Home Depot Inc (NYSE: HD) has released its third-quarter (Q3) earnings report with figures coming off better than analysts’ expectations. Net sales or revenue came in at $36.82 billion, up 9.8% from the year-ago period. The quarterly revenue was better than the $35.01 billion analysts projected.
For the nine months ended October 31 came in at $115.4 billion, up 15.6% from the $99.8 billion in the year-ago period. While analysts were expecting $3.40 Earnings Per Share (EPS), Home Depot printed $3.92 in the third quarter. For the nine months ended on October 31st, the company’s EPS came in at $12.35, up 32.5% from the 9.32% recorded in the year-ago period.
The impressive performance of Home Depot was informed by the growing demand by consumers for home decorations as the cost of housing has climbed over the past year. Beyond retail investors, home decoration professionals have also increased their demands in the past year, helping to boost the Home Depot bottom line.
According to the company’s report, same-store sales climbed 6.1% in the quarter, beating StreetAccount estimates of 2.2%. The firm witnessed a drop in its customer transactions by 5.5% to 428.2 million. However, in-store sales compensated for this drop, as the average ticket by 12.9% to $82.38 while sales per square foot increased by 6.2% in the quarter.
Other competing retailers including, but not limited to Lowe’s Companies Inc (NYSE: LOW) have also printed very good runs in their profitability as the demand for Do-It-Yourself (DIY) projects soared across the board. The impressive earnings report has uplifted Home Depot’s stock which climbed 2% in pre-market trading to $378.50. As the market opened, the stock is trading at $387.52 (+4.43%).
HD Q3 Earnings: Celebrating Teamwork
Home Depot is by far the largest retailer for household decorations in the United States, and as of the end of the third quarter, the company operated a total of 2,317 retail stores in several locations around the world. The Atlanta-based firm said it particularly operates in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico, including 14 stores from a small acquisition completed during the second quarter of fiscal 2021.
The company said its staff strength is over 500,000, all of which work together to meet its growing demands.
“As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility,” said Craig Menear, chairman, and CEO. “Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted. I would like to extend my sincere appreciation to our team, as well as our supplier, supply chain, and transportation partners, as we continue to navigate this dynamic environment together.”
As part of the firm’s unaudited balance sheet, Home Depot says it has a total asset of $73.03 billion as of the end of October.