Home Depot (NYSE: HD) on Tuesday posted first-quarter earnings that beat Wall Street’s expectations, despite February’s wet weather and a steep decline in lumber prices.
The Company reported earnings of USD 2.27 a share on revenue of USD 26.381 Billion, topping consensus estimates of USD 2.18 a share on revenue of 26.378 Billion. Same-store-sales were up 2.5% worldwide and rose 3.0% in the United States. Customer transactions were up 3.8% during the quarter, while the average sale increased 2.0%. Ted Decker, Executive VP of Merchandising, noted on a conference call that without lumber deflation, the average ticket price would have been closer to 3%. Lumber made up nearly 8% of Home Depot’s sales in the last fiscal year.
“As a result of these initiatives, and the current macroeconomic and housing backdrop, today we are reaffirming our sales and earnings guidance for fiscal 2019,” said Craig Menear, chairman, CEO and president. “I would like to thank our associates for their hard work and continued dedication to our customers.” The home improvement retailer expects full-year earnings to rise 3.1% to USD 10.03 a share, shy of expectations of USD 10.26 a share. Revenue is anticipated to increase 3.3%.
Unusually cold and wet weather across part of the U.S. delayed outdoor spring projects, hurting Home Depot’s first-quarter garden-product sales. The unfavorable weather also led to housing construction delays. But as the weather warms up, so do sales, according to sector analysts.
Shares of Home Depot are up less than 2% over the past 12 months. Its year-to-date gain is around 10%.