Home Depot 1Q17 Earnings Call Notes

Craig Menear – Chairman, CEO and President

Broad based growth in the US

“Turning back to the U.S. we saw a broad based growth across our store as both ticket and transactions grew in the quarter and all merchandising departments posted positive comps. Our commitment to new and innovative products continues to be a contributor of our ticket growth.”

45% of orders on HD website are pick up in store

“I think the interesting think for us is over 45% of our orders on homedepot.com the customer is actually choosing to pick up into our stores. So they are finding it incredibly convenient to blend the channels and utilize all the assets that we have.”

Don’t focus on online individually by itself

“When it comes to the profitability it’s actually this whole customer engagement is becoming a blended element between online and in-store, and the customer is choosing in some cases, they start the shopping experience online, they finish in-store or they might vice-versa, start the store and actually finish online. And so with 45% of the orders has been picked up, it is truly a blended effort and we look at that way, our merchants manage it as a total portfolio. So they see an entire blended mix of sales for the business. And that’s actually how we run the business. So we don’t focus on it individually by itself.”

Carol Tome

Only 3.2m Americans have negative equity in their homes

“This is really nothing statistic to me. There are 76 million owned households in the United States and of those there are only 3.2 million that having negative equity in their home. And you go back to 2011, 11 million of those household had negative equity in their home. So the amount shows that since 2011 homeowners have enjoyed 130% increase in wealth, if you will, coming from home price depreciation. So on average $50,000 per household. So, you can imagine at some point, to Ted’s point, they’ll take that down out and do a bigger millwork or total remodel job.”