Quarterly sales of same-stores at Home Depot crushed analyst estimates, thanks to the home improvement retailer experiencing an increase in customer transactions, and shoppers have been on average spending more in its stores.
Following devastating hurricanes that hit during Home Depot’s fiscal third quarter, the retailer said its revenue from the storms impacted positively its sales at same stores by as much as $282 million.
The retailer, based in Atlanta, also increased its outlook for sales and earnings for the full year based upon its projected sales from hurricane recovery.
Shares of Home Depot were up 2% in Tuesday’s premarket trading following the news.
Home Depot posted earnings per share of $1.84, excluding certain items, while Wall Street was expecting profit of $1.82 a share.
Revenue reached $25.03 billion, while Wall Street was expecting $24.55 billion.
Sales at same stores were up 7.9%, compared to a projected increase of more than 5.8%.
Though the three-month period had been marked by several natural disasters that included wildfires, earthquakes and hurricanes, the core business was solid, said CEO of Home Depot Craig Menear.
Net income at Home Depot reached $2.17 billion for its fiscal third quarter in comparison to $1.97 billion one year ago.
Revenue jumped 8% as sales per square foot at Home Depot grew compared to last year. The average ticket of shoppers move higher by 5%, and transactions were up 2.5%.
Total sales at same-stores were up by over 7.9% during its latest quarter, which easily outpaced Wall Street estimates. Comparable sales for U.S. Home Depot stores were higher by 7.8%.
Looking forward, Home Depot is now expecting its total sales will increase by 6.3%, in comparison to a forecast previously that called for growth of 5.3%.
Comparable sales are predicted at this time to move higher by 6.5% in comparison to estimates released prior of an increase of more than 5.5%.
The retailer specializing in home improvement increased its profit outlook for the full year and has predicted earning per share of $7.36, which is up from its forecast released previously of $7.29 a share.
While several retailers have been struggling to increase sales, businesses in home improvement like Home Depot and its biggest rival Lowe’s are continuing to outperform in the luring in of their shoppers to stores.
E-commerce businesses, including Amazon, have not yet been successful in assortments of some products from outdoor grills to lumber – online.