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Home Depot crushes estimates, its sales jump 32.7% as customers rang up bigger purchases

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Customers wearing protective masks wait to check out at a Home Depot store in Pleasanton, California, U.S., on Monday, Feb. 22, 2021.
David Paul Morris | Bloomberg | Getty Images

Home Depot on Tuesday crushed Wall Street’s earnings estimates as consumers’ splurging on their homes lingers more than a year into the coronavirus pandemic.

Shares of Home Depot rose more than 2% in premarket trading. The stock has risen more than 20% so far this year, giving it a market value of $344 billion.

Here’s what the company reported for the three months ended May 2 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $3.86, vs. $3.08 expected
  • Revenue: $37.5 billion, vs. $34.96 billion expected

The retailer reported fiscal first-quarter net income of $4.15 billion, or $3.86 per share, up from $2.25 billion, or $2.08 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.08.

Net sales rose 32.7% to $37.5 billion, beating expectations of $34.96 billion. Global same-store sales surged 31% for the quarter.

This is the first quarter that the retailer is facing year-over-year comparisons to its business during lockdowns. A year ago, its first-quarter same-store sales grew 6.4%. Home Depot was classified as an essential business, accelerating sales for the company’s do-it-yourself business as consumers tackled new projects while at home.

For the company’s first quarter this year, it reported 447.2 million customer transactions, up 19.3% from a year ago. Consumers were also spending more during their visits. Average ticket rose 10.3% to $82.37.

Home Depot hasn’t released an outlook for fiscal 2021. Last quarter, it cited the uncertainty caused by the ongoing crisis.

“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,” CEO Craig Menear said in a statement.