Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Home Depot posts record sales as demand for DIY products surges

Stock Markets Aug 18, 2020 11:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Home Depot is seen in Encinitas, California
 
HD
-0.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LOW
-1.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Uday Sampath Kumar

(Reuters) - Home Depot Inc (N:HD) reported its biggest rise in quarterly same-store sales in at least two decades on Tuesday as demand for paint, tools and lawn mowers surged from consumers stuck at home due to the COVID-19 pandemic.

The company's same-store sales jumped 23.4% in the second quarter, surging past analysts' average estimate of a 10.5% rise, as the home improvement chain emerged as one of the corporate winners during the pandemic.

Shares of Home Depot, however, fell about 1% in morning trading after analysts cautioned that its sales might have hit their peak.

"These are record comparable sales - it's really tough to sustain that," Wedbush Securities analyst Seth Basham said. "We will see a slowdown in the back half of the year - the question is the degree to which the slowdown occurs."

The company said it could not determine whether strong demand from earlier months would continue for the rest of the year, despite the U.S. housing market performing better than the broader economy.

People spending more time on do-it-yourself home projects such as painting and gardening pushed Home Depot's overall sales up 23.4% to a record $38.05 billion in the quarter ended Aug. 2.

That resulted in the company's highest ever profit sharing payout to its hourly employees.

The company spent about $480 million in additional benefits, including weekly bonuses and overtime, to compensate workers required to work in stores and warehouses amid the health crisis.

Still, net income rose 24.5% to $4.33 billion, or $4.02 per share. Analysts had expected a profit of $3.71 per share, according to IBES data from Refinitiv. [nCNWz4C6ya]

Shares of smaller rival Lowe's Cos Inc (N:LOW), which reports second-quarter results on Wednesday, were down marginally.

Interactive graphic on same-stores sales https://graphics.reuters.com/HOMEIMPROVEMENT-RESULTS/xegvbazrdpq/index.html

Home Depot posts record sales as demand for DIY products surges
 

Related Articles

Israel stocks lower at close of trade; TA 35 down 2.12%
Israel stocks lower at close of trade; TA 35 down 2.12% By Investing.com - Oct 02, 2022

Investing.com – Israel stocks were lower after the close on Sunday, as losses in the Banking, Financials and Real Estate sectors led shares lower. At the close in Tel Aviv, the TA...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Peter Dikeakos
Peter Dikeakos Aug 18, 2020 1:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can any politician explain to me how was Home depot allowed to be open all the past 6 months and Ma and Pa stores had to be shut? Everyone should boycott Home depot and only patronage private companies. It is A DISGRACE.
Gamer Turtle
GamerTurtle Aug 18, 2020 1:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
weird how they were essential. no idea if it has to do with its gardening services. lmao
Kaveh Sun
Kaveh Sun Aug 18, 2020 11:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yesterday analists said pros jobs were down. Pros shop at hd. Hd earning will be bad.
Silverbug 19
Silverbug 19 Aug 18, 2020 11:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Shop to you drop but can't go to church
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email