ATLANTA-Strong sales and a wary eye on expenses helped The Home Depot to a third-quarter net income gain of 42.7 percent, to $1.4 billion.
Net sales in the quarter, which ended on Nov. 3, rose 7.4 percent to $19.5 billion. The top-line performance included an increase of 7.4 percent in total-company same-store sales and a gain of 8.2 percent in domestic same-store sales.
Selling, general and administrative expenses were trimmed by 1 percent in dollars and 179 basis points as a percentage of sales, to 21 percent. Gross margin increased 35 basis points, ending the quarter at 34.9 percent.
Frank Blake, Home Deport’s chairman and CEO, attributed the retailer’s “solid performance” to the continuing improvement in the housing market. Based on this quarter, the company now expects net sales to increase by about 5.6 percent for the fiscal year as a whole, along with a same-store sales gain of 7 percent.