Home Depot sales spike as coronavirus spurs home-improvement projects
Sales rose 23% year-over-year
Storch Advisors CEO and former Toys ‘R’ Us Chairman and CEO Gerald Storch says investing in tech and offering value has helped Home Depot’s and Walmart’s success during the coronavirus.
Home Depot Inc. sales surged 23% in the three months through June as customers worked on their houses while sheltering at home during the COVID-19 pandemic.
The Atlanta-based home improvement retailer reported second-quarter revenue of $38.1 billion, outpacing the $34.53 billion that analysts surveyed by Refinitiv were anticipating. Net earnings rose 23% year-over-year to $4.3 billion, or $4.02 per share, beating the $3.71 that was expected.
Comparable sales were up 23% globally and 25% in the U.S.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HD | THE HOME DEPOT INC. | 405.71 | -4.68 | -1.14% |
“The investments we have made across the business have significantly increased our agility, allowing us to respond quickly to changes while continuing to promote a safe operating environment,” Home Depot CEO Craig Menear said in a statement. “This enhanced our team’s ability to work cross-functionally to better serve our customers and deliver record-breaking sales in the quarter.”
Home Depot booked 511.5 million customer transactions during the quarter, up 12.3% versus last year, as the average ticket rose to $74.12 from $67.31. Sales per square foot increased 23% to $629.38.
The company spent $480 million on additional benefits for associates during the quarter, bringing the total amount spent on enhanced pay and benefits during the COVID-19 pandemic to about $1.3 billion.
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Home Depot shares were up 32% this year through Monday, outperforming the S&P 500's 4.68% gain.