What Drove Home Depot’s Same-Stores Sales Growth in 2Q17?


Aug. 17 2017, Updated 6:06 p.m. ET

2Q17 performance

In 2Q17, Home Depot (HD) posted SSSG (same-store sales growth) of 6.3%, with US stores posting SSSG of 6.6%. US stores had SSSG of 6.6% in May, 6.2% in June, and 7.0% in July.

The company’s 2Q17 SSSG was driven by transaction growth and a rise in ticket size. During the quarter, transaction growth contributed 2.6%, while the rise in ticket size contributed 3.6%.

In 2Q17, lumber, tools, electrical, and flooring had strong double-digit SSSG, while building materials, indoor garden, appliances, and decor had SSSG above the company’s average. Other divisions, plumbing, millwork, kitchen and bath, outdoor garden, hardware, paint, and lighting posted positive SSSG but were lower than the company’s average.

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Sales from its Pro customers outpaced the company’s average with growth in both high-spend and low-spend Pros. Strong sales in lumber, building material, pipe and fittings, power tools, and wire drove Pro sales. Flooring, storage, organization, and patio drove sales from DIY (do-it-for-yourself) customers during the quarter.

Implementation of its frictionless interconnected retail system has enhanced customer experience. Improvements in content and mobile experience have also increased Home Depot’s online sales by 23.0% year-over-year.

Moving to international business, both Mexico and Canada posted positive SSSG in their respective currencies.

Next, let’s look at analysts’ revenue expectations for the next four quarters.


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