Behind a ‘unique’ $25 billion quarter
Five Home Depot departments scored double-digit comps in the third quarter, described by CEO Creaig Menear as a “unique” three months marked by natural disasters. Executives at Atlanta-based The Home Depot elaborated on this and other highlights from the company’s $25 billion third-quarter performance during its earnings call.
Executive VP of Merchandising Ted Decker said lumber, appliances, electrical, indoor garden, and tools were the five departments that grew comps by 10% or more in the quarter. He also pointed to strength in the core business, as well as double-digit comps in the storm-related categories of generators, wet-dry vacs, tarps, and ladders.
Pro sales, which also scored double-digit comps, once again outpaced DIY sales at the world’s largest home-improvement retailer.
“We believe that the work we are doing to enhance the service capabilities for the unique needs of the Pro customer continues to resonate,” said Menear.
Other highlights from the company’s third-quarter performance:
- Online sales grew approximately 19%in the quarter, now representing approximately 6.2%of our total sales.
- About 45% of online U.S. orders are picked up in stores.
- Comp average ticket increased 5.1%, and comp transactions increased 2.7%.
- Big-ticket sales in the third quarter, or transactions over $900, which represent approximately 22% of our U.S. sales, were up 12.1%.
- Transactions for tickets under $50, which make up about 16% of our U.S. sales, grew by 1.8% in the quarter.
Looking ahead to the fourth quarter product mix, the company intends to lean on what it calls its “product authority” in the area of cordless power tools, and expand it to adjacent categories. The company has high hopes for the Dewalt FlexVolt Cordless Air Compressor, as well as a new Makita LXT product line that offers 36-volt power
Decker pointed to Milwaukee, Dewalt, Ryobi, Makita, Diablo and Husky as a partial list of brands that will strengthen the retailer’s Gift Center in the fourth quarter.
New officers for WCLBMA
The West Coast Lumber & Building Material Association (WCLBMA) has elected new officers and directors for 2018 and confirmed other officers and directors who remain on the board. The action came at the annual convention of the organization in Rancho Mirage CA, on November 9, 2017.
Remaining as president for 2018 is Victor Fresca, vice president of Dixieline/ProBuild, San Diego Calif. First vice president is Mark Boone, president of Champion Lumber, Riverside, Calif. Second vice president is Frank Addiego, president of All Bay Mill & Lumber, American Canyon, Calif. All officers of the association serve two years terms.
Re-elected treasurer was Victor Hausmaninger, CPA, CEO of HBLA CPA’s, Irvine Calif.. Ken Dunham, executive director of the WCLBMA, Folsom Calif., will remain as corporate secretary.
Augie Venezia, Fairfax Lumber, Fairfax Calif., remains on the board as government affairs chair.
Newly elected as a director of the organization is: – Chris Fleiner, Reno Lumber, Reno Nev.,
Re-elected as directors are:
- Barrett Burt, Ganahl Lumber, Pasadena Calif.
- Glenda DeFrange, StraightLine Transport, Huntington Beach Calif.
- Barry Schneider, Bear Forest Products, Riverside Calif.
Holdover directors are:
- Rick Deen, Nichols Lumber, Baldwin Park, Calif.
- Lindsay Olson, Crenshaw Lumber, Gardena, Calif.
- Marc Mizorski, Hayward Lumber, Monterey, Calif.
- Tom Von Moos, Western Woods, Chico, Calif.
- Matt Endriss, Central Valley, Napa, Calif.
- Thom Wright, Sierra Pacific Industries, Redding, Calif.
Brian Bunt, Windsor Mill, Petaluma, Calif., will represent the organization’s young professional group, “Second Growth,” on the board of directors.
The West Coast Lumber & Building Material Association (WCLBMA) is one of the largest lumber and building material trade associations in the country, and has been active in California and adjacent states since the early 1900s. The organization celebrated its official 100th anniversary in 2017. The association has services of legislative and regulatory representation, education and training programs, professional development, communications and industry information, benefit programs, and industry networking and social events. The organization is also affiliated with the National Lumber & Building Material Dealers Association.
HBSDealer Stock Watch: Another big drop for SHLD
On a day when the Dow Jones Industrial Average finished down, the HBSDealer Stock Watch performed OK. The majority of home improvement stocks listed below posted gains at the end of trading Tuesday, led by BXC, up 3.91%, and LOW, up 2.19%. Sears took another tumble – down 7.5%.