Home Depot Net Jumps 32 Percent in Fourth Quarter
ATLANTA-The Home Depot brought its fiscal year to an end with a strong bottom-line performance in the fourth quarter, ending on Jan. 29.
Net income for the quarter climbed 32 percent to $774 million, on a net sales gain of 5.9 percent to $16 billion. For the fiscal year, net income rose 16 percent to $3.9 billion as net sales rose 3.5 percent to $70.4 billion. Same-store sales for the quarter were up 5.7 percent, and increased 3.4 percent for the year.
Selling, general and administrative expenses for the quarter were up 1.8 percent in dollars, but dropped 96 basis points as a percentage of sales to 24.2 percent. Gross margin increased 29 basis points to 35 percent.
Frank Blake, Home Depot's chairman and CEO, attributed the strong end of the year to favorable weather, which delivered results that exceeded the company's expectations. For the new fiscal year, the company said it expected total sales growth of 4 percent and a low single-digit increase in same-store sales.