Home Depot Net Climbs 12.4 Percent in Second Quarter
ATLANTA-Buoyed by rising sales and declining expenses, second-quarter net income for The Home Depot rose 12.4 percent to $1.5 billion.
Net sales in the quarter, which ended on July 29, edged up 1.7 percent to $20.6 billion, which included a pickup of 2.1 percent in same-store sales. "As expected," said Frank Blake, Home Depot's chairman and CEO, "second-quarter sales reflected the pull forward of seasonal activity into the first quarter. But we saw continued demand for core products and delivered second-quarter earnings above our expectations."
Selling, general and administrative expenses were down 2.9 percent in dollars and 92 basis points as a percentage of sales, to 19.8 percent. Gross margin rose 17 basis points to 34.2 percent.
Home Depot said it now expects 2012 sales to rise by about 4.6 percent from last year.