On the heels of its announcement that it would be acquiring HD Supply Holdings, a leading national distributor of maintenance, repair and operations (MRO) products, The Home Depot reported a strong third quarter built upon increased demand for home improvement projects.
The Home Depot reported sales of $33.5 billion for the third quarter of fiscal 2020, an increase of $6.3 billion, or 23.2% from the third quarter of fiscal 2019. Comparable sales for the third quarter of fiscal 2020 were 24.1%, and comparable sales in the U.S. were a positive 24.6%.
Net earnings for the third quarter of fiscal 2020 were $3.4 billion, or $3.18 per diluted share, compared with net earnings of $2.8 billion, or $2.53 per diluted share, in the same period of fiscal 2019. For the third quarter of fiscal 2020, diluted earnings per share increased 25.7% from the same period in the prior year.
“The third quarter was another exceptional quarter for The Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year,” said Craig Menear, chairman and CEO, Home Depot. “Our ability to effectively adapt to this high-demand environment is a testament to both the investments we have made in the business as well as our associates’ focus on customers. We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment. I am proud of the resilience and strength our associates have continued to demonstrate, and I would like to thank them and our supplier partners.”
Throughout the COVID-19 pandemic, The Home Depot noted that it has taken significant actions to support associates, including expanded paid time off for all hourly associates to use at their discretion and the implementation of a temporary weekly bonus program. The company is now transitioning from these temporary programs to invest in permanent compensation enhancements for frontline, hourly associates. This will result in approximately $1 billion of incremental compensation on an annualized basis.
The Home Depot also entered into a definitive agreement to acquire HD Supply Holdings, Inc., a leading national distributor of maintenance, repair and operations (MRO) products in the multifamily and hospitality end markets. The $8 billion acquisition is expected to position The Home Depot as a premier provider in the MRO marketplace.