Home Depot sets new records in Q2; raises forecast

The spring selling season was a busy one for the nation's largest home improvement retailer as Americans continue to spend money on their homes — both new and existing ones.



A pair of home improvement records were broken in Home Depot's second quarter as the Atlanta-based retail giant reported the highest quarterly revenue in its history. The retailer also set a new high for net earnings.



For the three months ended July 30, Home Depot reported better-than-expected net sales of $28.1 billion, up 6.2% from $26.5 billion in the year-ago period. U.S. same-store sales rose 6.6%, also more than expected.



"After a solid first quarter, Home Depot has posted an even stronger set of second quarter figures," commented Håkon Helgesen, analyst at GlobalData Retail. “Given the long run of big uplifts in same-store numbers, this is a very impressive performance." (For more, click here.)



Net earnings increased 9.5% to $2.67 billion, or $2.25 per share, up from $2.44 billion, or $1.97 a share, in the prior year. The results topped forecasts.



"We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history," said Craig Menear, Home Depot chairman, CEO and president. "We also achieved the highest quarterly net earnings in company history. These results were made possible by our hard working associates and the outstanding values brought forth by our supplier partners."



Based on the year-to-date numbers, the company raised its financial expectations to 5.5% annual growth in comp-store sales, a 5.3% rise in total revenue, and a 13% increase in earnings per share.



"We expect to see continued growth in the repair and remodel market as the U.S. has experienced solid wage growth, faster home price appreciation, and the reemergence of first-time homebuyers," CFO Carol Tome said on the chain's quarterly call.



The company added one new store in the quarter, pushing its footprint to 2,282 stores.