Home Depot (HD) posted revenue of $23.9 billion in 1Q17, reflecting a rise of 4.8% compared to $22.8 billion in 1Q16. The company outperformed analysts’ consensus revenue estimate by 0.62%.
Home Depot’s revenue growth was driven by its positive same-store sales growth (or SSSG) of 5.5%, its addition of new stores in the last 12 months, and a rise in its online sales. By the end of 1Q17, the company operated 2,281 stores, compared to 2,275 stores in 1Q16. In 1Q17 alone, the company opened two stores in the United States and one in Canada.
HD posted positive SSSG in all three of its US divisions, with its southern division leading the pack. The company’s pro business outpaced its average growth due to strong sales in the commercial and industrial lighting, lumber, wire, and gypsum categories. Its online sales rose 23% in 1Q17 aided by its flexible supply chain.
Moving on to international business, both Canada and Mexico posted positive SSSGs in their respective currencies. The digital sites in both countries were updated to implement HD’s interconnected retail strategy, which boosted the company’s online sales in the regions.
During the quarter, the company’s revenue was negatively impacted by fluctuating foreign currency exchange rates and deferred sales.