ATLANTA-The early warm weather helped drive traffic to Home Depot stores and fueled the retailer’s bottom line to an impressive first-quarter gain.
Net income rose 27.5 percent to $1 billion, on a net sales increase of 5.9 percent to $17.8 billion. The sales boost for the quarter, which ended on April 29, included a rise in same-stores sales of 5.8 percent, which in itself included a 6.1 percent jump in same-store sales for Home Depot’s U.S. stores.
“We saw a stronger-than-expected start to the year, driven by record warm weather and continued demand for core products,” said Frank Blake, chairman and CEO.
Gross margin rose eight basis points to 34.7 percent. Selling, general and administrative expenses edged up 1.9 percent but shed 89 basis points as a percentage of sales, to 22.9 percent.
Home Depot said that, based on its year-to-date performance, its sales should log a 4.6 percent increase for the current fiscal year.