Strong sales from all merchandise categories lifted The Home Depot to a healthy third quarter, which produced a 14.1 percent pickup in net income to $2 billion.

Net sales in the quarter, which ended on Oct. 30, finished at $23.2 billion, up 6.1 percent from last year’s third quarter. This included an increase of 5.5 percent in overall same-store sales, including a 5.9 percent increase in U.S. same-store sales. All of the company’s merchandise categories posted positive comp results, with lighting and home décor performing above company average, said Ted Decker, executive vice president of merchandising, during a conference call to financial analysts this morning.

In addition, Home Depot turned in growth of more than 17 percent in online sales, said Craig Menear, chairman, president and CEO. Online accounted for 5.6 percent of the home improvement retailer’s total sales in the quarter, Menear added.

Gross margin rose six basis points to 34.7 percent. Selling, general and administrative expenses increased by 2.9 percent in dollars but declined 59 basis points as a percentage of sales, to 18.5 percent.

For the full fiscal year, Home Depot said it expects sales to rise 6.3 percent ahead of last year, including a same-store sales gain of 4.9 percent. The strength in the housing market should continue to boost the retailer’s business for the remainder of the year. “We are seeing home prices continue to appreciate and the stock of homes for sale continuing to grow, which should lift our business,” Menear said.

(Source: hfndigital.com  Author: David Gill)