Home Depot 1Q Results Show Strong Sales Growth; Profit Climbs

By Matt Grossman

Home Depot Inc. Tuesday posted strong sales growth and said comparable-store sales grew by nearly a third year over year as strong demand continued to lift the retailer's results during the Covid-19 pandemic.

The Atlanta-based home-improvement retailer logged earnings of $3.86 a share, a rise from $2.08 a share in the same three-month period a year earlier. Total net earnings rose to $4.15 billion, from $2.25 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast a profit of $3.02 a share.

Sales climbed to $37.5 billion, from $28.26 billion in 2020's fiscal first quarter. Analysts were expecting sales of $34.82 billion.

Home Depot's comparable-store sales rose 31%, with comparable-store sales in the U.S. climbing 30%. Home Depot Chief Executive Craig Menear said the company's management of strong demand for home-improvement projects contributed to its sales growth.

Home Depot's sales over the past year have been boosted by shifting consumer behavior during the Covid-19 pandemic, including a rising focus on the home amid lockdowns and telecommuting.

Home Depot's number of customer transactions was 447.2 million in the quarter, a 19% rise from 374.8 million a year earlier. The average ticket was $82.37, compared with $74.70 a year ago.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

May 18, 2021 06:30 ET (10:30 GMT)

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