The Home Depot gained comp sales momentum in the second quarter, while updating its guidance with an eye on the new tariffs taking effect.
The home improvement retailer reported sales of $30.8 billion for the second quarter of fiscal 2019, a 1.2% increase from the second quarter of fiscal 2018. Comparable sales were a positive 3%, and comparable sales in the U.S. were up 3.1%.
Net earnings for the second quarter of fiscal 2019 were $3.5 billion, or $3.17 per diluted share, compared with net earnings of $3.5 billion, or $3.05 per diluted share, in the same period of fiscal 2018. For the second quarter of fiscal 2019, diluted earnings per share increased 3.9% from the same period in the prior year.
“We were pleased with our results as we delivered accelerating comp performance throughout the quarter,” said Craig Menear, chairman, CEO and president. “We are encouraged by the momentum we are seeing from our strategic investments and believe that the current health of the U.S. consumer and a stable housing environment continue to support our business. That being said, lumber prices have declined significantly compared to last year, which impacts our sales growth. As a result, today we are updating our sales guidance to account primarily for continued lumber price deflation, as well as potential impacts to the U.S. consumer arising from recently announced tariffs. We are reaffirming our earnings-per-share growth guidance for fiscal 2019.”
The company updated its guidance for fiscal 2019, a 52-week year compared to fiscal 2018, a 53-week year. The company expects its fiscal 2019 sales to grow by approximately 2.3% and comp sales for the comparable 52-week period to be up approximately 4%. The company reaffirmed its diluted earnings-per-share growth guidance for the year and expects diluted earnings-per-share growth of approximately 3.1% from fiscal 2018 to $10.03.