Quarterly sales Home Depot jumped 23.4% in conditions of high demand, when people are forced to stay home due to pandemic COVID-19, were engaged in landscaping their homes. Experts predict that the company will be difficult to surpass the result achieved in the future, but expect this trend of high demand will continue on the background of the pandemic.
On Tuesday, shares of Home Depot (NYSE: HD) rallied 32% year to date, rose to a 52-week high, but then declined by 1.2% during trading at the time of this writing.
The largest network for home improvement reported the largest revenue growth and profits over the last six quarters, beating the average estimate of analysts. At the same time, the company did not give forecasts to investors, once in may canceled its earlier forecast because of the uncertainty associated with the pandemic.
Earnings per share the Home Depot of the 2nd quarter rose 27% to $4,02, which is $0.33 to more than the analyst estimate of $3,69. The total profit for the quarter (net income) totaled $4.33 billion, compared with $3.48 billion a year earlier.
Quarterly revenue increased 24% to $38.1 billion, which is above the analytical forecast of $billion of 34.37 to See a history of revenue and profits Home Depot for the last 2 years can link.
The management of the network noted that customers have to buy more, the number of transactions during the quarter, Home Depot grew by 12.3% compared to the previous year, and increased average check from $67,31 to $74,12. Sales per square foot increased 23% to $629,38.
The company also said that during the quarter there was a doubling of digital sales, with about 60% of the orders, customers pick up in stores. Strategy digital sales One Home Depot has borne fruit in a pandemic and should help the company to reach new heights in the future, more about Marketinfo.pro wrote in the article “Digital strategy Home Depot promises great benefits for growth.”
Commenting on second quarter results Craig Menard, Chairman and CEO of Home Depot, said, “We remain focused on developing our investment strategy One Home Depot that will provide us with the possibility of permanent growth in the long term, at the same time preserving the flexibility to navigate the current environment”.
During the quarter the company spent $480 million in additional benefits for employees, bringing the total amount spent to increase wages and benefits during a pandemic COVID-19, amounted to about $1.3 billion.
Management stated that sales of ordinary consumers exceeded sales to professional builders and contractors. Analysts also noted that the increased demand was caused by the isolation of people at home because of the pandemic, and believe that the positive growth will continue.
Home Depot sales in the first two weeks of August showed a trend to a similar level of demand of the second quarter.
