Home Depot and Rival Lowe’s Show 3Q Increases
The Home Depot, the world’s largest home improvement retailer, reported third quarter earnings of $1.5 billion, up 20%, versus $1.3 billion one year ago.
Sales increased 10.5% to $20.7 billion. The company also reported a record average ticket of $58.92, a 6.1% jump over the third quarter last year, citing a broader assortment and new, innovative and distinctive merchandise such as new power tools. The quarter ended Oct. 30.
Analysts said repairs following destruction from the hurricane season, as well as new housing built in other areas, played a role in the results, but that smaller items such as tools and aluminum siding were the driving factors behind the record third quarter results.
The company opened 37 new stores across Canada, Mexico and the U.S., bringing the total number of stores to 1,972. The company plans to open its 2,000th store in the fourth quarter.
The Home Depot’s rival, and second largest home improvement retailer, Lowe’s Cos., Inc., reported earnings of $649 million for the quarter ended Oct. 28, a 25.8% jump from one year ago. Sales increased 16.9% to $10.6 billion from $9.1 billion. During the quarter, Lowe’s opened 33 new stores and closed one temporarily due to Hurricane Katrina. The company operates 1,170 stores in 49 states.
