Boosted by hurricanes and fires, Home Depot’s same-store sales in the last quarter easily flew past what analysts had been expecting.
The George-based retailer released its third quarter financial report that beat on both the top and bottom line.
Earnings, excluding items, came to $1.84 a share, beating the forecast of $1.82 by two cents. Revenues at $25.03 billion was higher than the $24.55 billion expected. Same-store sales, a key metric, was at 7.9% for the quarter, easily beating the 5.8% expected.
CEO Craig Menear stated, “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.”
According to Home Depot, revenue from Hurricanes Harvey and Irma added roughly $282 million to the sales total for the third quarter.
Looking forward, the company has boosted its full-year sales and earnings outlook, and has forecast total sales to increase 6.3 percent. Previously the company had forecast 5.3 percent. The company now expects comparable sales to climb 6.5 percent versus prior estimates of 5.5 percent. Full-year profit is expected to be $7.36, previously the company expected $7.29 a share.
Vice President of Moody, Bill Fahy, commented, “Home Depot’s recent comparable store sales performance and improved sales and earnings guidance is a good indicator that the home improvement sector continues to paint a better outlook as it sidesteps broader retail woes.”
“Home improvement has remained a retail bright spot even as a myriad of headaches continue to afflict the broader retail industry,” he said.
Shares of Home Depot are up more than 20% this year so far.
Disclaimer: We have no position in Home Depot Inc. (NYSE: HD) and have not been compensated for this article.