Home Depot Q3 sales up

‘Another solid performance,’ CEO notes, as sales in Q3 rise nearly 6%.
Home Depot shutterstock edit

The Home Depot reported third quarter 2022 sales of $38.9 billion, 5.6% higher than prior year’s same quarter of approximately $36.8 billion.

Net income for the third quarter was $4.3 billion compared to $4.1 billion same quarter previous year; that represented an 8.2% increase from the same period from fiscal 2021.

Other statistical highlights from the company’s third quarter:

• Of 14 merchandising departments, 11 generated positive same-store sales. The leaders were building materials, plumbing, lumber, millwork, paint and hardware – all with comps above the company average.

• The three departments with declining sales were appliances, flooring and indoor garden.

• The number of transactions decreased 4.4 percent, but the value of the average ticket increased 8.8 percent. The increase in comp average ticket was driven primarily by inflation and also demand for new and innovative products, said Jeff Kinnaird, executive VP of merchandising.

• Big ticket transactions – those of more than $1,000 – increased 10.1 percent, compared to the same quarter last year. Big ticket strength was seen across many pro-oriented categories, such as fasteners and gypsum.

• Pro sales outpaced DIY sales in the third quarter. “Pros tell us their backlogs remain strong,” said Kinnaird.

• Sales leveraging Home Depot’s digital platforms increased nearly 10 percent.

“Our results in the quarter reflect continued solid demand for home improvement projects,” said CEO Ted Decker. “While we did see some deceleration in certain products and categories, the project business remains strong across most of our departments.”

At the end of the third quarter, the company operated a total of 2,319 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs approximately 500,000 associates.

hd comps

The Bottom Line: Home Depot sales moved ahead nearly 6% for Q3 2022 to almost $39 billion and earnings rose 8%.

What the CEO said:We delivered another solid performance in the third quarter, driven by strength in project-related categories across the business,” said Ted Decker, chair, president and CEO of Home Depot.

“Both Pro and DIY grew year over year this quarter,” said Decker in the company’s Q3 earnings conference call Tuesday morning, adding that, “better functionality in our apps means better customer engagement.”

Company info: Click HERE to read the Q3 2022 financial report from Home Depot.

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