Second-Quarter Net Rises 14.3 Percent for Home Depot



ATLANTA–The Home Depot finished its second quarter with a healthy 14.3 percent gain in net income, which totaled $1.4 billion.

A watchful eye on expenses helped boost the home-improvement retailer’s bottom line. Selling, general and administrative expenses rose by just 1.4 percent in dollars, and dropped 57 basis points as a percentage of sales to 20.7 percent. Gross margin rose eight basis points to 34 percent.

Net sales increased 4.2 percent to $20.2 billion. According to Frank Blake, Home Depot’s chairman and CEO, sales were driven by the company’s seasonal business, storm-related repairs and strength in its core categories. Same-store sales rose 4.3 percent.

Based on the second quarter, Home Depot said it now expects sales for all of the fiscal year to rise 2.5 percent.

Posted in News, Retail.

Last updated: August 16, 2011