Home Depot cements strong Q2, paving the way for a better 2nd half
Retail Editor 2 -- Home Textiles Today, August 20, 2013
Atlanta - Thanks to improvements in the housing market, The Home Depot said it was able to build net earnings, sales and comps over the second quarter period, and as a result is raising its guidance for fiscal 2013.
The home improvement chain reported a 20% increase in net earnings to $1.8 billion and a 22.8% jump in diluted earnings per share to $1.24.
Sales rose 9.5% to $22.5 billion for the quarter, and comparable store sales were up 10.7%, with comp sales for U.S. stores increasing 11.4%.
Due to the 14th week in the fourth quarter of fiscal 2012, second quarter sales were impacted by a calendar timing change that resulted in one less week of spring sales in the second quarter when compared to the same period of fiscal 2012. This shift reduced total sales growth by about $249 million or 120 basis points.
"The second quarter results exceeded our expectations as our business benefited from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the U.S.," said Frank Blake, chairman and ceo.
Based on its strong year-to-date performance and outlook for the balance of the year, The Home Depot now expects sales to increase 4.5% in the fiscal year, with comps growing 6.0% for the year; and diluted earnings per share to be up 20% to $3.60.
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