ATLANTA-Third-quarter net income for The Home Depot rose 1.4 percent to $947 million, as the home-improvement retailer started on what it believes to be the beginning of a recovery in the housing market.
Net sales gained 4.6 percent to total $18.1 billion in the quarter, which ended on Oct. 28. This included an increase of 4.3 percent in same-store sales. Frank Blake, Home Depot chairman and CEO, said the results were better than the company expected “and reflected, in part, what we believe is the start of the path toward the healing of the housing market.”
Gross margin picked up 17 basis points as a percentage of sales to finish at 34.6 percent. Selling, general and administrative expenses rose 4.6 percent in dollars but were flat as a percentage of sales at 22.8 percent.
Home Depot said it now expects sales for the fiscal year as a whole to increase 5.2 percent, while earnings per share should rise by a hefty 18 percent for the year.