By Matt Grossman
Home Depot Inc., a home-improvement retailer that has thrived as people spend more time isolated during the coronavirus pandemic, continued its momentum into the latest quarter and pledged to permanently increase compensation for its hourly workers.
In the third fiscal quarter, the company's revenue rose to $33.54 billion, from $27.22 billion a year earlier. Analysts surveyed by FactSet were expecting revenue of $31.83 billion. Same-store sales grew by 24.1% year over year overall, and by 24.6% in the U.S.
The company's performance in the quarter, which ended Nov. 1, bookends a robust summer season for the Atlanta-based retailer. In the first nine months of the fiscal year, revenue grew by more than 18% overall. Home Depot shares closed trading Monday near $280, up more than 28% since the start of the calendar year.
The number of customer transactions for Home Depot in the third quarter rose by 13% year over year to more than 453 million, with an average ticket size of $72.98. Sales per retail square foot increased by more than $100 to $552.85.
Home Depot's quarterly net profit was $3.43 billion, or $3.18 a share, compared with a profit of $2.77 billion, or $2.53 a share, in last year's third quarter.
Analysts had forecast a profit of $3.13 a share.
The company said Tuesday it would permanently raise compensation for front-line workers in a program that will cost approximately $1 billion a year. During the Covid-19 pandemic, Home Depot has offered some temporary benefits to workers, including more paid time off and a temporary weekly bonus program.
"We continue to lean into these investments because we believe they are critical in enabling market-share growth in any economic environment," Chairman and Chief Executive Craig Menear said.
Home Depot shares declined about 2.1% in pre-market trading.
On Monday, Home Depot agreed to buy HD Supply Holdings Inc., a wholesale distributor of building supplies, for roughly $8.7 billion. HD Supply was a unit of Home Depot until 2007, when Home Depot sold HD Supply to a group that included Bain Capital, Carlyle Group and Clayton Dubilier Rice.
Write to Matt Grossman at email@example.com
(END) Dow Jones Newswires