Home Depot raises full-year forecast after hurricanes increase sales | 2017-11-14
After a series of unfortunate natural disasters this year, Home Depot announced a significant increase in demand and sales as it served impacted communities.
The home improvement store reported sales of $25 billion for the third quarter of fiscal 2017, up 8.1% from the third quarter of fiscal 2016.
Additionally, net earnings for the third quarter of fiscal 2017 hit $2.2 billion, or $1.84 per diluted share, up from net earnings of $2 billion, or $1.60 per diluted share, for the same period last year.
“Though this quarter was marked by an unprecedented number of natural disasters, including multiple hurricanes, wildfires in the West, and earthquakes in Mexico, the underlying health of our core business remains solid,” said Craig Menear, chairman, CEO and president. “I am proud of our team and suppliers for their extraordinary efforts to support those in the path of the various natural disasters throughout the quarter. Our support of the impacted communities continues.”
From the hurricane alone Home Depot, the company estimates that hurricane-related sales positively impacted comparable store sales growth by approximately $282 million in the third quarter.
Home Depot, however, also incurred approximately $104 million of hurricane-related expense. The hurricanes negatively impacted Home Depot’s operating profit by approximately $51 million in the third quarter.
Looking ahead, Home Depot adjust its forecast based on its year-to-date performance, underlying strength of the core business, and projected hurricane recovery sales.
The company increased its fiscal 2017 sales growth guidance and now expects sales will be up approximately 6.3% and comp sales will be up approximately 6.5%.