Home Depot Boosts Q1 Net 12.5 Percent

Home DepotATLANTA-With help from the sale of a portion of its equity ownership in HD Supply Holdings, The Home Depot realized a 12.5 percent gain in first-quarter net income, which totaled $1.4 billion.

That sale resulted in an earnings benefit, net of tax, of $61 million. Net sales increased 2.9 percent to $19.7 billion in the quarter, which ended on May 4. This included a rise of 2.6 percent in same-store sales.

Frank Blake, Home Depot's chairman and CEO, said the quarter, which brought the beginning of the spring selling season, got off to a slow start. However, sales were solid in regions which were not affected by the weather, Blake said.

Gross margin in the quarter edged up five basis points to 35 percent. Selling, general and administrative expenses rose 0.3 percent but dropped 57 basis points as a percentage of sales, to 21.3 percent.

Home Depot said it expects sales for the fiscal year as a whole to gain 4.8 percent, in line with its previous guidance.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.