Tags: Home Depot | Spring | Sales | Earningd

Slow Start to Spring Hurts Home Depot's Quarterly Sales

Tuesday, 20 May 2014 08:05 AM

Home Depot Inc., the world's largest home improvement chain, reported lower-than-expected quarterly sales as its spring selling season got off to a slow start after a severe winter in many parts of the United States.

The company gets much of its business from building contractors, who are vulnerable to weather-related disruptions.

Spring is also an important time for Home Depot as households prepare their gardens and get set for the barbecue season.

Home Depot's shares fell 2 percent to $75 before the bell.

The company's sales rose 2.9 percent to $19.69 billion in the first quarter ended May 4. Comparable-store sales increased 2.6 percent.

Analysts on average had expected sales of $19.95 billion, according to Thomson Reuters I/B/E/S.

Home Depot, however, maintained its sales growth forecast of 4.8 percent for the year ending January, citing "solid results" in markets that were not affected by harsh winter weather.

The company raised its full-year earnings forecast to $4.42 per share from $4.38 per share. The increase reflects a 4 cents per share benefit from the sale of shares in HD Supply Holdings Inc. and Home Depot's share buybacks this year.

The company said it intended to buy back up to $3.75 billion additional shares this year.

Home Depot's net income rose to $1.38 billion, or $1.00 per share, in the first quarter from $1.23 billion, or 83 cents per share, a year earlier.

Analysts on average had expected a profit of 99 cents per share.

Home Depot rival Lowe's Cos. Inc. will report results on Wednesday.

© 2017 Thomson/Reuters. All rights reserved.

 
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Home Depot Inc., the world's largest home improvement chain, reported lower-than-expected quarterly sales as its spring selling season got off to a slow start after a severe winter in many parts of the United States.
Home Depot, Spring, Sales, Earningd
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2014-05-20
Tuesday, 20 May 2014 08:05 AM
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