Home Depot’s revenue growth
In the first quarter, Home Depot (HD) outperformed Lowe’s (LOW) revenue growth. For the quarter, Home Depot posted revenues of $26.38 billion, which represented growth of 5.7% from $24.95 billion in the first quarter of fiscal 2018. Positive SSSG (same-store sales growth), and the net addition of new stores drove the company’s revenue in the first quarter.
At the end of the first quarter, Home Depot operated 2,289 stores, which represents a rise of four units from 2,285 at the end of the first quarter of fiscal 2018. For the quarter, the company posted overall SSSG of 2.5% with same-store sales in the US rising by 3.0%. However, some of the increase in revenue was offset by unfavorable currency translations, wet weather conditions in February, and deflation in lumber prices. The unfavorable currency translations lowered the company’s revenue by $76 million.
Lowe’s revenue growth
In the first quarter, Lowe’s revenue rose by 2.2% to $17.74 billion. The overall SSSG of 3.5% drove the company’s revenue in the first quarter of 2019. However, some of the increases in revenues were offset by a decline in store count of 152 units. Lowe’s operated 2,002 stores with retail selling space of 208.8 million square feet at the end of the first quarter compared to 2,154 stores covering 215 million square feet at the end of the corresponding quarter of 2018. The company posted SSSG of 4.2% in the US during the quarter. The company’s management said that the wet weather conditions in February negatively impacted its February sales by 3.2%.