Depot’s third quarter, with color
Home Depot’s bottom line for the three months ended Oct. 28 reads $2.867 billion in net earnings, an increase of 32.4% from the same period of 2017. But more than that, the Atlanta-based company explained in its quarterly conference call that the digital business is growing, and that sales to pros are growing faster than sales to DIYers.
Here are some of the other Q3 performance highlights shared by the orange-clad executives:
* Comparable store sales in the third quarter were positive 5.4%. A strong number, but marking a deceleration from 8.1% in the second quarter. “Looking at our departments, comps in appliances, electrical, plumbing, tools, décor, and flooring were above the company average,” said Ted Decker, senior VP of merchandising. “All of our other departments but lighting were positive, but below the company average. The comp in lighting was essentially flat.”
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* Third quarter online sales grew about 28% from the third quarter of 2017. CEO Craig Menear described a drive to a “frictionless, interconnected customer experience.”
* Delivery is improving, Menear said – specifically, car and van Express Delivery that offer same-day delivery of products from the store. The service is available to more than 40% of the U.S. population. “We have seen increased utilization from both our pro and DIY customers,” Menear said of the Express Delivery.
* A store refresh program and signage update has arrived in about 700 stores, ahead of schedule, Menear said.
* Big-ticket sales improved again. Transactions over $1,000 were up 9.1% in the third quarter, thanks largely to vinyl-plank flooring, windows, appliances and water heaters, said Senior VP of Merchandising Ted Decker.
* Sales to pro customers increased faster than the company’s average comp. Power tools, concrete, several plumbing categories and several electrical categories showed comps sales growth above the company average.
* Average ticket was up 3.5% -- to $65.11.
* or the DIY customer, categories such as safety and security, vanities, lawn mowers, ceiling fans, and interior and exterior paint showed strong growth in the quarter, said Decker.
* The company identified about $150 million of third-quarter sales related to the 2017 and 2018 hurricanes. According to CFO Carol Tome: “We estimate that hurricane related sales positively impacted U.S. comps by 60 basis points in August, but negatively impacted U.S. comps by 80 basis points in September and 120 basis points in October.”
* Total sales per square foot for the third quarter were about $434, up 5.2% from the same period last year.
Here are some of the other Q3 performance highlights shared by the orange-clad executives:
* Comparable store sales in the third quarter were positive 5.4%. A strong number, but marking a deceleration from 8.1% in the second quarter. “Looking at our departments, comps in appliances, electrical, plumbing, tools, décor, and flooring were above the company average,” said Ted Decker, senior VP of merchandising. “All of our other departments but lighting were positive, but below the company average. The comp in lighting was essentially flat.”
CLICK TO ENLARGE* Third quarter online sales grew about 28% from the third quarter of 2017. CEO Craig Menear described a drive to a “frictionless, interconnected customer experience.”
* Delivery is improving, Menear said – specifically, car and van Express Delivery that offer same-day delivery of products from the store. The service is available to more than 40% of the U.S. population. “We have seen increased utilization from both our pro and DIY customers,” Menear said of the Express Delivery.
* A store refresh program and signage update has arrived in about 700 stores, ahead of schedule, Menear said.
* Big-ticket sales improved again. Transactions over $1,000 were up 9.1% in the third quarter, thanks largely to vinyl-plank flooring, windows, appliances and water heaters, said Senior VP of Merchandising Ted Decker.
* Sales to pro customers increased faster than the company’s average comp. Power tools, concrete, several plumbing categories and several electrical categories showed comps sales growth above the company average.
* Average ticket was up 3.5% -- to $65.11.
* or the DIY customer, categories such as safety and security, vanities, lawn mowers, ceiling fans, and interior and exterior paint showed strong growth in the quarter, said Decker.
* The company identified about $150 million of third-quarter sales related to the 2017 and 2018 hurricanes. According to CFO Carol Tome: “We estimate that hurricane related sales positively impacted U.S. comps by 60 basis points in August, but negatively impacted U.S. comps by 80 basis points in September and 120 basis points in October.”
* Total sales per square foot for the third quarter were about $434, up 5.2% from the same period last year.