Home Depot 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“As part of our interconnected retail strategy, we have completed the rollout of buy online, ship to store. This required an effort across our business from supply chain to merchandising to online to IT and store operations.”

“during the first quarter we opened one new store in Mexico for an ending store count of 2,257. At the end of the first quarter, selling square footage was 235 million. And total sales per square foot for the first quarter were $328, up 7.8% from last year.”

“What we have seen over the last several quarters is some of our hard hit markets, the markets that were really ground zero of the housing collapse recover and that’s California, Florida, moving into Arizona, now even Las Vegas and Nevada. So it’s really part of how badly those markets suffered previously and now starting to return to more normal performance.”

“We brought PayPal into our business because our customers wanted to use that as a form of standard and so we’re delighted to have the relationship with them”

“So our eyes wide open. We want to be where the customer is going. We don’t necessarily want to lead the way.”

“It’s really interesting statistics. If you look at the first quarter 22% of the sales based online were actually picked up in the store…isn’t that interesting?”

“And as we look at our garden sales, recall last year we had a really warm first quarter. So we pulled forward about $160 million of garden sales into the first quarter last year. This year we estimate we lost about $188 million of garden sales. But it’s not lost forever, some of it’s lost. But we are going to get the majority of that back in the second quarter”

“nce home owners believe their home is more of an investment than an extent, we believe the nature of their spending will change. And so this data came out in fourth quarter, it just shows that it would have negative equity spend may be $1000 a year but those that have 100% positive equity or maybe loan-to-value as much as 49%, those been close to $3000 a year.”

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