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Home Depot sales up 33% as US consumers splurge

15:13, 18 May 2021

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Home Depot sales floor photo

The world's biggest home improvement retailer has revealed explosive sales – $37.5bn – for the first quarter. This figure is a $9.2bn increase compared to a year ago ($28.26bn). Home Depot earnings per share soared to $3.86 against the $3.10 dividend widely expected by Wall Street. Overall profits came in at $4.15bn.

Home Depot has, largely, been able to remain open throughout the pandemic. Its share price in the last week has sagged, however, sinking from around $341 to $315 at the time of writing (mid-afternoon, 18 May).

Pandemic sales wind

Overall, Home Depot’s shares have risen by around 20% over the last 12 months. The operating margin – close to 14% – appears steady. Given surging commodity prices, that figure could rise. The average amount spent per customer also climbed to more than $82 per sale compared to just under $75 a year ago.

“Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects,” said Craig Menear, Home Depot’s chief executive.

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Rival share price gains

Take a look at the US retail scene more broadly, though and you can see that Home Depot alone – Macy’s shares surged more than 12% last week while Dillard’s rose from a little over $100 to $146.

Some of Dillard's share-price uplift has been fuelled by a share-price re-purchase plan – up to $500m of stock. Dillard’s has also pushed up its dividend.

US home improvement retailer Lowe’s has seen a similarly strong rebound in its share price during the last year.

Read more: Walmart up 4% after beating expectations

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