Home Depot Posts Larger 2Q Profit as Revenue Grows Amid Pandemic

By Matt Grossman

Home Depot Inc. on Tuesday reported a higher second-quarter profit as the coronavirus pandemic lockdowns turned consumers' attention to their homes.

The Atlanta-based retailer reported year-over-year increases in customer transactions, average ticket size and sales per square foot, surpassing analysts' forecasts for net income and revenue.

Home Depot posted a second-quarter profit of $4.33 billion, or $4.02 a share, compared with a profit of $3.48 billion, or $3.17 a share, in the same three-month period a year earlier.

Analysts surveyed by FactSet anticipated earnings per share of $3.64.

Home Depot's quarterly revenue was $38.05 billion, up from $30.84 billion in the second quarter of 2019. Analysts had forecast revenue of $34.53 billion.

In the quarter, Home Depot recorded additional employee benefits of about $480 million, bringing the total it has spent on enhanced pay and benefits during the Covid-19 pandemic to $1.3 billion.

Comparable-store sales grew 23% year over year, and by 25% in the U.S.

The company's board of directors declared a dividend of $1.50 a share, payable Sept. 17.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

August 18, 2020 06:33 ET (10:33 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.