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What data breach? HD’s comps increase 5.8%


Customers at the nation’s largest home improvement retailer appeared to shrug off any concerns about a data breach as Home Depot’s sales increased 5.4% to $20.5 billion. Comparable store sales increased 5.2%, but grew 5.8% at U.S. stores. The increased productivity at existing stores drove profit growth, with earnings increasing to $1.5 billion, or $1.15 per share, compared to $1.4 billion, or $95 cents a share, the prior year.

"During the quarter we saw strong performance across all geographies led by growth in transactions and continued strength in the core of the store," said Craig Menear, Home Depot’s president and CEO. "I would like to thank our associates for their hard work and dedication to our customers, and I would like to thank our customers for their continued confidence in The Home Depot."

The company confirmed its expectations that sales this year will grow roughly 4.8% and that earnings per share will grow by 21% to approximately $4.54. Included in the company’s expectation is the planned expenditure of $1.26 billion to repurchase shares in the fourth quarter on top of year to date expenditures of $5.74 billion.

The guidance also includes $34 million in costs related to the data breach Home Depot discovered earlier this year. The company also reminded investors it doesn’t know how much additional money it will have to spend related to the breach and the unknown expenses may have a material adverse effect on future results.

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