Home Depot’s Earnings

The company’s profits rose 19% to 70 cents a share, three cents more than estimates. Sales were up 13% to $21.5 billion.

The average customer transaction increased to $60.75. Home Depot said its appliance market share grew 1.4 percentage points to 9.9 percent in the first quarter. The retailer is the third- largest seller of appliances behind Lowe’s and Sears Holdings Corp.
Home Depot’s installation sales gained 8.5 percent to $844 million as consumers paid professionals to put in kitchen counters, windows, doors and patios.
Gross margin, or the percentage of sales left after subtracting the cost of goods sold, widened to 33.68 percent from 33.49 percent, Home Depot said. Selling, general and administrative costs fell to 20.4 percent of sales from 21.2 percent.
Nardelli, who turns 58 tomorrow, made about 18 acquisitions last year as he builds the supply division into a unit with $12 billion in revenue. The business will make up about a fifth of sales by 2010, Home Depot has said. Sales to professionals, including those in stores, represent 30 percent of revenue.

Posted by on May 16th, 2006 at 9:37 am


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