Home Depot made significant gains in the second quarter compared with the period a year earlier when sales at its stores and website, both up and running amid shopping disruptions associated with the COVID-19 pandemic, got a boost based on the unique circumstances.
For the 2021 second quarter, net earnings were $4.81 billion, or $4.53 per diluted share, compared with $4.33 billion, or $4.02 per diluted share, in the year-prior period.
Home Depot topped a Yahoo Finance-published analyst average second-quarter earnings per share estimate of $4.43, even as it beat a $40.73 billion revenue estimate.
Sales increased 8.1% to $41.12 billion as comparable sales gained 4.5% and comps in the United States advanced 3.4% versus the quarter a year previous, Home Depot reported. Operating income advanced 9.4% to $6.64 billion versus the year-before period.
Craig Menear, Home Depot chairman and CEO, said in a conference call that the retailer delivered positive comps every week despite the “unprecedented” sales gains experienced last year as the coronavirus shuttered a number of retail channels. He said that consumers continue to engage in home improvement projects and larger projects, as the evidence of professional sales growing faster than do-it-yourself sales for the second quarter indicates.
Menear said Home Depot did experience some changes in consumer behavior as more purchasing shifted to weekdays from weekends. He attributed the shift to more consumers getting involved in outside weekend activities including travel but suggested that the comp gains demonstrate continued interest in home renovation.
In announcing the second-quarter results, Menear said, “I am very proud of our associates, who continue to demonstrate a relentless focus on serving our customers. As a result of their efforts, we achieved a milestone of over $40 billion in quarterly sales for the first time in company history. I would like to extend my sincere appreciation to our team, as well as our supplier and supply chain partners, as they continue to operate in this dynamic and challenging environment.”