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.
“Comp sales were positive 7.4% and our diluted earnings per share were $0.95 per. Our U.S. stores had a positive comp of 8.2%.”
“From a geographic perspective, sales were strong across the U.S. All of our U.S. regions posted positive comps in the quarter as did 39 of our top 40 markets.”
“Sales from our online channels, including those picked up in our stores, were up over 50% and are now approximately 3% of our total sales. ”
“On the international front, our Mexican business positively comped for the quarter. That makes 40 quarters in a row for 10 years of quarter-over-quarter positive comp growth for our Mexican business — a great achievement. Our Canadian business had positive comps for the eighth quarter in a row.”
“Our average ticket increase was positively impacted somewhat by commodity price inflation from products, such as lumber and copper. The total impact of comp growth from commodity inflation was approximately 45 basis points”
“The drivers behind the increase in big ticket purchases were continued strength in our pro business, appliances, HVAC, countertops and in-stock kitchens.”
“At the end of the third quarter, selling square foot was 236 million and total sales per square foot were $329, up 7.2% from last year.”
“Housing is a bright spot in our economy. As such, we are forecasting our fourth quarter sales and earnings to be stronger than our plan. ”
“So as you know, we’ve just increased our comps for 2013 to 7%.
And in case we get there is this way. First, we start with the GDP estimate of around 2%. Then, we add to that what we think housing is contributing to our sales. We look at housing turnover, home price appreciation and new household formation. And when we look at those drivers, we think housing is contributing about 250 basis points of our growth.
To that, we add the benefits that we’ve enjoyed this year from commodity price inflation that’s maybe around 80 basis points for the year. The benefits that we are enjoying from our new expanded appliance assortment that’s another 80 basis points, and then there is about 90 basis from that that’s just coming from other growth via new innovations that we are bringing into stores, great execution by our store associates. But that’s how we get to the 7%.”
” look for when consumers start to think as of a granite countertop as an expense rather than an investment.”
“we are seeing customers’ willing to spend particularly where you are bringing innovative product that helps them complete their job faster, saves them money”
“If you think about it the underwriting standards are very tight. There was a recent survey of banks, 79% of the respondents said that they have not loosened up on their underwriting standards.”