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The Home Depot (NYSE:HD) slid past consensus estimates with its Q2 earnings report. Standing out, comparable sales fell 2.0% during the quarter to beat the consensus expectation for a drop of 4.1%.
The Atlanta-based company’s average ticket rose 0.1% year-over-year during the quarter to $90.07 vs. +0.6% consensus. Customer transactions were down 1.8% to 459.1M during the quarter. Sales per retail square foot fell 2.3% to $684.65. “While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories,” noted CEO Ted Decker.
Operating income was 8.6% lower during Q2 to $6.59B. Net earnings fell 9.9% to $4.66B. EPS came in at $4.65 vs. $5.05 a year ago and $4.45 consensus. The company’s inventory position at the end of the quarter was $23.27B vs. $26.09B a year ago.
Looking ahead, the home improvement retailer sees full-year comparable sales down 2% to 5% vs. -3.9% consensus and EPS down 7% to 13%. Home Depot (HD) also guided for an operating margin rate of between 14.3% and 14.0% for the year. “We remain very positive on the medium-to-long term outlook for home improvement and our ability to grow share in a large and fragmented market,” stated Decker. Home Depot (HD) also approved a $15B buyback authorization to replace a prior authorization.
Shares of Home Depot fell 0.29% in premarket trading to $329.00. Rival Lowe’s (LOW) tracked 0.19% higher in early trading.
