Home Depot Shares Fall After Expenses Climb Alongside Sales

(Bloomberg) — Home Depot Inc. shares declined after the home-improvement retailer reported higher costs and a plan to spend $1 billion to boost annual compensation for front-line hourly employees.

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While same-store revenue, a key gauge of performance for retailers, rose 24% in the quarter ended Nov. 1, that also brought higher expenses. Cost of sales, a measure of what the company spends to generate each sale, was up 24% from a year ago, according to the statement. Part of that is due to protective gear for associates and constant cleaning of the stores.

The Atlanta-based retailer has broadly benefited amid the pandemic of 2020 as consumers divert spending that would have gone to travel and entertainment to improving their homes. Unlike other retailers, like Walmart Inc., that are reporting fewer transactions but larger tickets, Home Depot is seeing gains in both metrics. That means shoppers are placing more

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Impressive Earnings From Walmart, Home Depot, Apparently Not Impressive Enough To Lift Market

Key Takeaways:

  • Walmart
    WMT
    and Home Depot
    HD
    earnings both beat Wall Street’s expectations
  • Despite impressive results, big retailers’ shares not getting much support early on
  • Retail sales for October fail to impress, adding pressure in pre-market trading

Shoppers flocked to two of the country’s largest retailers last quarter, but evidently that’s not enough to push stocks higher after yesterday’s vaccine-led rally.

Walmart (WMT) and Home Depot (HD) earnings both looked really impressive, and WMT shares gained some ground in pre-market trading ahead of the opening bell. HD shares fell, however, and major stock indices were in the red early on. This could reflect buying interest drying up a bit following record closes for the major indices yesterday, though it doesn’t necessarily change the overall positive tone. Pandemic-related anxiety also could be a factor in the weakness this morning.

WMT continues to thrive in the stay-at-home

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Home Depot earnings: Sales surge means $1 billion more for employees

  • Home Depot Inc said Tuesday it will spend around $1 billion more on employees’ pay annually, as it benefits from a surge in demand for tools, paint, and building materials in the COVID-19 pandemic.
  • Overall net sales increased 23.2% to $33.54 billion, beating analysts’ estimate of $32.04 billion.
  • Home Depot have provided staff with temporary weekly bonuses and more hours of paid time off. Some of these will now become permanent, it said.
  • Visit Business Insider’s homepage for more stories.

Home Depot said on Tuesday it would spend about $1 billion more on employees’ compensation annually, as the home improvement chain benefits from a sustained surge in demand for tools, paint, and building materials due to the COVID-19 pandemic.

With limited options for travel or leisure activities, Americans are spending more time at home and using their discretionary income on minor home remodeling and repair work.

“Despite elevated activity for

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Black Friday 2020: Home Depot deals on tools, appliances, furniture are live right now

What are the best Black Friday 2020 deals from Home Depot?

Home Depot’s 2020 Black Friday sale started earlier this month and runs through December 2 as the home improvement center joins the list of big box and online retailers launching their Black Friday offerings weeks in advance of the traditional date this year.

You can shop the full Home Depot Black Friday 2020 sale online and find steep discounts on appliances, furniture and home decor, tools and more from top brands like DeWalt, Makita and LG Electronics.

Home Depot joins retailers like Walmart, Amazon, Best Buy, Coach Outlet and Wayfair who have started Black Friday offerings early and expanded online availability this holiday shopping season. Some retailers, like Best Buy, are guaranteeing that all deals in store will also be available online, while others, like Walmart, are expanding the deals across the whole month of November to curtail the

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Home Depot earnings beat as shoppers focus on home, retailer to make pandemic pay raises permanent

  • Home Depot on Tuesday reported third-quarter earnings that beat estimates with sales surging more than 24% compared with a year ago as pandemic home improvement buying continued.
  • The company noted that it’s taking its temporary employee compensation programs that it implemented during the pandemic and making it permanent.
  • Home Depot’s profit also surged 24% to $3.43 billion, or $3.18 per share, during the fiscal third quarter ended Nov. 1, up from $2.77 billion, or $2.53 per share, a year earlier.



A customer wears a protective mask while unloading purchases off a cart outside a Home Depot Inc. store in Reston, Virginia, on Thursday, May 21, 2020.


© Provided by CNBC
A customer wears a protective mask while unloading purchases off a cart outside a Home Depot Inc. store in Reston, Virginia, on Thursday, May 21, 2020.

Home Depot on Tuesday reported third-quarter earnings that beat estimates with sales surging about 24% compared with a year ago as pandemic home improvement buying continued.

The company noted that it’s taking its temporary employee compensation programs that it implemented

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Home Depot Rebuilds Its Pro Business With HD Buyback

Home Depot is doubling down on its home improvement business, announcing it is buying back HD Supply, a company it had spun off in 2007 that specializes in serving the professional and commercial builder trade.

For Depot, the industry’s larger player and a retailer that has been on a recent hot streak with the boom in the home remodeling and redecorating business, it’s a move calculated to build up its share in the contractor industrial supply business. The deal, for about $8.7 billion, reunites the two companies which split 13 years ago when Depot sold HD to a group of private equity investors. Since then it went public

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Home Depot reunites with HD Supply in deal valued at $8B

Home Depot is reuniting with former subsidiary HD Supply, buying the company in a deal valued at about $8 billion

ATLANTA — Home Depot is reuniting with former subsidiary HD Supply, buying the company in a deal valued at about $8 billion.

The acquisition will give Home Depot a stronger hand in the contractor and professional side of its business, which is booming during the pandemic, just like its more consumer facing, DIY sales.

HD Supply is a distributor of maintenance, repair and operations products in the multifamily and hospitality markets. Home Depot initially bought HD Supply in 1997, but sold it in 2007 when began to focus more on its retail operations.

Home Depot Chairman and CEO Craig Menear said in a prepared statement that

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Home Depot, Lowe’s to Report in Wake of $9.1 Billion Deal

(Bloomberg) — Home improvement retailers Home Depot Inc. and Lowe’s Cos. report third-quarter results this week and Wall Street is once again predicting blowout sales performances.

The results will follow Home Depot’s announcement Monday that it will acquire building products distributor HD Supply Holdings Inc., a former unit, in a deal valued at almost $9.1 billion. Just last week, Lowe’s denied a report that it was in talks to acquire HD Supply.

Revenue for the period ended Oct. 31 is seen moderating from record levels the two companies saw over the summer, which were driven by do-it-yourself projects during the pandemic. Still, both are seen posting the highest-ever sales for a third quarter, according to data compiled by Bloomberg. Analysts are also targeting another period of double-digit comparable sales growth.



chart: Lowe's U.S. same-store sales soar faster than its bigger rival's


© Bloomberg
Lowe’s U.S. same-store sales soar faster than its bigger rival’s

Shares of both companies have outperformed the broader

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What To Expect From Home Depot Stock in Q3?

Home Depot (NYSE: HD) is scheduled to report its fiscal third-quarter results on Tuesday, November 17. We expect the retailer to report strong Q3 results, beating the revenue and earnings expectations, benefiting from the stay-at-home bump. That said, the increase in remote working may be longer-lasting, which will allow the company to serve those customers looking to build and maintain a home office beyond the pandemic. The home improvement retailer has invested quickly and heavily to build out its digital capabilities to accommodate the demand surge during the pandemic, and these capabilities

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Home Depot Reunites With HD Supply in Deal Catering to Pros

(Bloomberg) — Home Depot Inc. agreed to buy building products distributor HD Supply Holdings Inc., reuniting the home-improvement retailer with its former subsidiary more than a decade after they split apart.

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Home Depot will buy all outstanding shares for about $56 apiece, according to a statement Monday, representing a premium of about 25% over HD Supply’s closing price on Friday. With about 156 million shares outstanding, according to a filing, the offer is valued at roughly $8.7 billion. Including net cash, the deal has an enterprise value of about $8 billion, the companies said.

The acquisition brings back together two companies that used to be under the same roof and will give Home Depot more exposure to the professional contractor side of the business. Like do-it-yourself repairs, that segment has boomed during the pandemic as Americans want to improve the homes they’re spending more time in.



chart: Contractor supplier spikes as Home Depot announces plan to buy it


© Bloomberg

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