Home Depot 2Q14 Earnings Call Notes

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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. Full transcripts can be found at Seeking Alpha

6.4% comp

“Thank you, Diane, and good morning, everyone. Sales for the second quarter were $23.8 billion, up 5.7% from last year. Comp sales were positive 5.8% and our diluted earnings per share were $1.52. Our U.S. stores had a positive comp of 6.4%.”

Broad based growth across all geographies

“We saw broad-based growth in the quarter across all of our geographies. All three of our U.S. divisions posted mid-single-digit comps with the variance of performance within 100 basis points of each other. We’re pleased with these results since we were anniversarying double-digit comps in the second quarter of last year. ”

Housing is a modest tailwind

“We believe the housing market remains a modest tailwind for our business. We had growth in transactions and ticket for both the quarter and the half. Both our Consumer and Pro businesses grew”

customers clearly feel better about investing in their homes

“We believe the housing market remains a modest tailwind for our business. We had growth in transactions and ticket for both the quarter and the half. Both our Consumer and Pro businesses grew”

Strength in big ticket items

“Our Installation Services business, which is high ticket and tends to be on the discretionary end of spending, had a strong quarter. And as Craig will detail, we saw an acceleration of big ticket transactions. These results support the view of a continuing recovery in the U.S. home improvement market.”

capital plan focused on omnichannel retail

” from a capital allocation philosophical perspective, the first use of cash is to invest it back in the business, and this year we have a capital plan of $1.5 billion, and we’re committed to that plan. Interestingly, we are tilting our investments more towards interconnected retail and technology as we continue to try to meet the needs of our changing customer.”

Strength across the store

” from a capital allocation philosophical perspective, the first use of cash is to invest it back in the business, and this year we have a capital plan of $1.5 billion, and we’re committed to that plan. Interestingly, we are tilting our investments more towards interconnected retail and technology as we continue to try to meet the needs of our changing customer.”

Our holiday buy was made last year

“Honestly, the plans for the back half of the year have been put in place months ago. We always would tweak and make adjustments, but the heart of what we’ve got planned was committed many moons ago…I mean our holiday buy was made last year.”