Home Depot posts a $25 billion quarter
The world’s largest home improvement retailer posted third quarter sales of $25 billion, up 8.1% from the same quarter last year. Comparable store sales in the U.S were positive 7.7%.
The Atlanta-based giant said hurricanes and other disasters boosted comparable store sales growth by about $282 million, but the gross-margin on hurricane-related sales was considerably lower than the company average.
Net earnings increased 10.0% to $2.165 billion.
"Though this quarter was marked by an unprecedented number of natural disasters, including multiple hurricanes, wildfires in the West, and earthquakes in Mexico, the underlying health of our core business remains solid," said Craig Menear, chairman, CEO and president. "I am proud of our team and suppliers for their extraordinary efforts to support those in the path of the various natural disasters throughout the quarter. Our support of the impacted communities continues."
Based on its year-to-date performance, underlying strength of the core business, and projected hurricane recovery sales, the company lifted its fiscal 2017 sales growth guidance and now expects sales will be up approximately 6.3% and comp sales will be up approximately 6.5%.
The company increased its store count by one unit in the third quarter, bringing its footprint to a total of 2,283.
HBSDealer Stock Watch: Big Drop for SHLD
Gainers and decliners were evenly represented on the Stock Watch Monday, with SHLD and LL heading in the wrong direction – down 9.9% and 3.3%, respectively. On the positive side, TREX was up 2.7%.
Ames Companies adds brand to its mix
The AMES Companies has welcomed a new brand into its family of long-handled tools. The company’s parent, Griffon Corp., acquired Harper Brush Works.
The acquisition will broaden AMES’ long-handle tool offering in North America to include brooms, brushes, and other cleaning tools and accessories.
The purchase price for Harper was approximately $5 million. The acquisition is expected to contribute approximately $10 million in annualized revenue and be immediately accretive to Griffon’s earnings in its first full year of operations.
AMES brands already include AMES, Razor-Back, True Temper and Jackson.
Harper, a U.S. manufacturer of cleaning products for professional, home, and industrial use, was a division of Horizon Global.
Griffon currently conducts its operations through three reportable segments:
AMES, founded in 1774, is the leading U.S. manufacturer and a global provider of long-handled tools and landscaping products for homeowners and professionals.