Home Depot Report Profit Increase In The Second Quarter

Home Depot Report Profit Increase In The Second Quarter

An increase of 14 percent was revealed by Home Depot for its fiscal second-quarter profit. The profit increase came as the home improvement retailer increased its earnings forecast for the whole year. The company also took advantage of strong spring sales following a delay in sales due to severe winter weather during the first part of the year.

Second quarter results reflected an increase in same-store sales of the retailer by 6.4 percent. The company revealed that customer transactions increased along with average ticket sales during the quarter. Results also surpassed the expectations of the company. The increase in sales also resulted to an increase in the earnings forecast of the company for the whole year.

Analysts have indicated that the solid second quarter results were not surprising since Home Depot revealed in the early part of the year that slow sales in the first quarter due to severe winter weather are expected to be recording during the second quarter. The company indicated weather fluctuations in the first quarter will have little effect on sales in the first half since they offset each other.

The gradual recovery in the housing market and an improvement in customer service resulted to an increase in sales in the last few years. The company also took action in improving its supply chain.

The fundamentals of the housing market are expected to be revealed with the gradual release of data during the week. The confidence of US homebuilders has already increased as the housing market reached a seven-month high recently. Data on existing-home sales and new-home construction is expected to be released within the week.

The home-improvement retail company revealed an increase in profit by $1.8 billion or $1.24 per share for the quarter that ended on August 3. Profit for the quarter reached $2.05 billion or $1.52 per share. Home Depot also revealed an increase in net sales by 5.7 percent.

Posted by James Fried on Friday September 26 2014, 4:45 AM EST. Ref: Fortune. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0