Why Home Depot’s sales surged in Q2
Outstanding execution produces expectation-topping results and a stunning U.S. same store sales increase at Home Depot.
The retailer reported sales of $30.5 billion for the second quarter ended July 29, an 8.4 percent increase from the second quarter of fiscal 2017. Same store sales overall increased 8%, and comp sales in the U.S. were positive 8.1 percent.
The sales increases at Home Depot come after the retailer reported a dip in sales in the spring first quarter. The second quarter results suggest that the retailer is leveraging the opportunity of consumers in the mood to remodel their homes due to the strong economy.
The home improvement retailer raised its outlook for revenue and same-store sales for the full year, saying the number of customer transactions jumped during the quarter, and shoppers were spending more at its stores.
"We were very pleased with our record second quarter sales and earnings. Not only did our seasonal business rebound from the first quarter, but our overall results exceeded our expectations," said Craig Menear, chairman, CEO and president. "These results exemplify the outstanding execution of our combined team of store associates, merchants, suppliers and supply chain."
Sales on a per-square-foot basis climbed 8.6 percent during the quarter, according to the retailer. It also said the average shopper's ticket jumped 5 percent to $66.20 and customer transactions were up 3.1 percent overall.
Net earnings were $3.5 billion, or $3.05 per diluted share, compared with net earnings of $2.7 billion, or $2.25 per diluted share, in the same period of fiscal 2017. For the second quarter, diluted earnings per share increased 35.6 percent from the same period in the prior year.
At the end of the second quarter, the company operated a total of 2,286 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.