(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.
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