Home Depot beat Wall Street expectations on profit and sales in the quarter ended May 1 as the healthy housing industry delivered a steady flow of business for the home-improvement retailer.
The company recorded net earnings of $1.8 billion for the fiscal first quarter, up 14% over the same period a year earlier and outpacing S&P Global Market Intelligence expectations of $1.7 billion. That translated into $1.45 per share, better than the expected $1.36.
Net sales jumped 9% to $22.8 billion, fueled by a 6.5% increase in sales at stores open at least a year.
The company also raised its forecast for the fiscal year, saying it now projects a revenue increase of 6.3%, a same-store sales increase of 4.9% and a diluted earnings per share increase of 14.8% to $6.27.
“We were pleased with our stronger than expected start to the year, driven by solid execution and broad-based growth across the store,” Home Depot CEO Craig Menear said in a statement. “This was made possible by our hard working associates and their continued dedication to our customers in a quarter marked by week-to-week demand spikes caused by weather variability.”
The average Home Depot customer spent $60.03 in the quarter, up 2.4% from a year earlier. Sales per square foot rose 6.5% to $376.73.
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