Home Depot’s revenue growth
Home Depot (HD) outperformed Lowe’s Companies (LOW) in revenue growth in the second quarter. During the quarter, Home Depot posted revenues of $30.46 billion, which represents 8.4% growth from $28.11 billion in the second quarter of 2017. The company also outperformed analysts’ revenue forecast of $30.03 billion.
Home Depot’s revenue growth was driven by the adoption of its new accounting standard (which contributed $33.0 million), positive SSSG (same-store sales growth) of 8.0%, and the addition of new stores in the last four quarters.
The shifting of its seasonal sales from the first quarter to the second quarter due to extreme winter conditions helped the company post positive SSSG in all three divisions, 19 regions, and 40 major markets in the United States. In the international market, Home Depot posted SSSG in the mid- to high single digits in Canada and Mexico.
Home Depot (HD) operated 2,286 stores by the end of the second quarter compared to 2,282 stores in the second quarter of 2017. The addition of four new stores also contributed to the company’s revenue growth.
Lowe’s revenue growth
During the fiscal second quarter, Lowe’s (LOW) posted revenues of $20.89 billion, outperforming analysts’ consensus expectation of $20.78 billion. The company’s revenues grew 7.1% YoY (year-over-year), driven by the adoption of its new accounting standard (which contributed $140 million), positive SSSG of 5.2%, and the addition of new stores.
The company’s strong messaging and more personalized marketing helped it take advantage of the increase in seasonal project demand, driving its sales. By the end of the second quarter, Lowe’s operated 2,155 stores compared to 2,141 stores in the second quarter of 2017.
Next, we’ll look at the SSSG of both companies in the second quarter.