Home Depot posts blowout quarter as pandemic-fueled boom prolongs
Same-store sales rose 31% in the first quarter
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Home Depot Inc on Tuesday reported a bigger-than-expected 31% jump in quarterly same-store sales, allaying concerns that the top U.S. home improvement chain would see pandemic-fueled demand easing as vaccinations gather steam.
The company's blue-chip stock rose 2.5% in pre-market trading, set to add to the over 20% gains this year.
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The last 12 months have been a blockbuster period for Home Depot as revenue and profit surged from stuck-at-home Americans investing more to upgrade their living spaces. The company also benefited from a years-long focus on e-commerce, particularly in services such as "click and collect" service.
Same-store sales growth was expected to slow in the first quarter to 19.9% from 24.5% in the prior three-month period, as more Americans get inoculated, virus restrictions ease and outdoor activities resume.
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The company said first-quarter same-store sales was the biggest increase in recent history, but did not provide a forecast for the rest of the year.
Sky-rocketing prices of lumber, which made up nearly 9% of Home Depot's total sales last year, are also expected to have boosted sales in the first quarter.
Overall net sales jumped 32.7% to $37.50 billion, beating estimates of $34.96 billion, according to IBES data from Refinitiv.
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Net earnings rose to $4.15 billion, or $3.86 per share, from $2.25 billion, or $2.08 per share, a year earlier. Analysts had expected a profit of $3.08 per share.
(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila)