FILE - In this Aug. 14, 2018 file photo shows a Home Depot store in Passaic, N.J. Home Depot is reporting better than expected profit and revenue for the first quarter, though bad weather early in the year and an extra week in the fiscal year dampened the home improvement retailer’s comparable store sales. Those sales, watched closely by industry analysts, rose 2.5%, short of the 4.2% they were expecting, according to a survey by Zacks Investment Research. (AP Photo/Ted Shaffrey, File)

Home Depot posts strong profit, revenue

May 21, 2019 - 7:53 am

ATLANTA (AP) — Home Depot is reporting better than expected profit and revenue for the first quarter despite a damp start to 2019.

That inclement weather and an extra week in the previous fiscal year dampened the home improvement retailer's comparable store sales.

Comparable store sales, a key gauge of a retailer's health, increased 2.5%, which is short of the 4.2% expected, according to Zacks Investment Research. In the U.S., same-store sales climbed 3%.

Despite the bad weather, customers spent more, with the average ticket climbing 2% to $67.31. The number of customer transactions also improved, up 3.8% from a year earlier.

The Atlanta company still foresees fiscal 2019 earnings up about 3.1% from fiscal 2018 to $10.03. It maintains sales will rise by approximately 3.3%.

The home improvement retailer earned $2.51 billion, or $2.27 per diluted share, for the three months ended May 5. That compares with $2.4 billion, or $2.08 per diluted share, a year ago.

That easily beat the $2.16 per share analysts polled by Zacks were calling for.

Revenue rose to $26.38 billion from $24.95 billion, also topping expectations.

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Portions of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HD at https://www.zacks.com/ap/HD

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