The Home Depot’s hot streak continued in the third quarter as the nation’s largest home center chain reported strong sales gains for the three months ended October 29.
The company reported sales of $25 billion for the third quarter of fiscal 2017, an 8.1% increase from the third quarter of fiscal 2016. Comparable store sales for the third quarter were up 7.9%, and comp sales for U.S. stores increased 7.7%.
Net earnings for the third quarter of fiscal 2017 were $2.2 billion, or $1.84 per diluted share, compared with net earnings of $2 billion, or $1.60 per diluted share, in the same period of fiscal 2016.
“Though this quarter was marked by an unprecedented number of natural disasters, including multiple hurricanes, wildfires in the West, and earthquakes in Mexico, the underlying health of our core business remains solid,” said Craig Menear, chairman, CEO and president, Home Depot. “I am proud of our team and suppliers for their extraordinary efforts to support those in the path of the various natural disasters throughout the quarter. Our support of the impacted communities continues.”
Home Depot officials estimate that hurricane-related sales positively impacted comparable store sales growth by approximately $282 million in the fiscal third quarter. The gross margin on these hurricane-related sales was considerably less than the company average. In the fiscal third quarter, the company also incurred approximately $104 million of hurricane-related expense. As a result of the hurricanes, the company’s operating profit was negatively impacted by approximately $51 million in the fiscal third quarter.
Based on its year-to-date performance, the underlying strength of the core business, and projected hurricane recovery sales, the home center chain lifted its fiscal 2017 sales growth guidance and now expects sales will be up approximately 6.3% and comp sales will be up approximately 6.5%.