Seasonal Categories Boost Home Depot Q2

The Home Depot today reported sales of $22.5 billion for the second quarter of fiscal 2013, the three months ended August 4. Total sales increased 9.5% from the second quarter of fiscal 2012 when sales were $20.6 billion. On a like for like basis, comparable store sales for the second quarter of fiscal 2013 increased 10.7% across the company, while comp sales for U.S. stores rose 11.4%.

Due to the 14th week in the fourth quarter of fiscal 2012, second quarter sales were impacted by a calendar timing change that resulted in one less week of spring sales in the second quarter when compared to the same period of fiscal 2012. This shift reduced total sales growth by approximately $249 million or 120 basis points, noted the company.

Net earnings for the second quarter were $1.8 billion, or $1.24 per diluted share, compared with net earnings of $1.5 billion, or $1.01 per diluted share, in the same period of fiscal 2012. For the second quarter of fiscal 2013, diluted earnings per share increased 22.8% from the same period in the prior year.

“The second quarter results exceeded our expectations as our business benefited from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the U.S.,” said Frank Blake, chairman and CEO, Home Depot.

In addition, based on its year-to-date performance and outlook for the balance of the year, the company raised its fiscal 2013 sales guidance and said it expected sales to be up approximately 4.5% with comparable store sales up approximately 6% for the year.

At the end of the second quarter, Home Depot operated a total of 2,258 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.