Home Depot continued to make gains in the second quarter despite changing consumer demand, supply chain complications and a variable macroeconomic environment.
Home Depot net earnings were $5.17 billion, or $5.05 per diluted share, compared with net earnings of $4.81 billion, or $4.53 per diluted share, in the 2021 quarter, the company stated.
A Yahoo Finance-published analyst consensus estimate anticipated diluted earnings per share of $4.95 and sales of $43.36 billion.
Comparable sales advanced 5.8% while, in the United States, comps increased 5.4% in the quarter year over year, the company reported. Net sales increased 6.5% to $43.8 billion from the year-previous period. Operating income was $7.21 billion versus $6.64 billion in the year-before quarter.
In a conference call, Ted Decker, Home Depot CEO, said spring seasonal categories, while comping positively, had underperformed expectations, even as sales in project-related categories were stronger than anticipated. He added, that despite macroeconomic uncertainties, the omnichannel business had been strong as the overall operation continued to make gains.
In the call, Jeff Kinnaird, executive Vice President, merchandising, said all product categories posted positive comps in the quarter. Appliances, storage and home decor were among those that gained at a lower rate than the company average. Kinnaird pointed out all categories were up against tough year-over-year comparisons, particularly those that had done well in the COVID-19 pandemic. He noted, in the second quarter, comp average ticket increased by 9% and comp transactions decreased by 3.1%. Comp average ticket gained from inflation, Kinnaird said, “as well as demand for new and innovative products.”
In announcing the financial results, Decker said, “In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history. Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers while continuing to navigate a challenging and dynamic environment.”
At second quarter’s end, Home Depot operated 2,316 stores in all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.
