The Home Depot and Lowe's posted sales increases of more than 4% for the second quarter, with profits also up.
The latest figures for Lowe's Companies Inc revealed that sales for the second quarter ended July 31, 2015 increased 4.5% to $17.3bn from $16.6bn in the second quarter of 2014, and comparable sales increased 4.3%. For the six month period, sales were $31.5 billion - an increase of 4.9% over the same period a year ago, and comparable sales increased 4.7

The retailer, which operates 1,846 home improvement and hardware stores in the United States, Canada and Mexico, also recorded a net profit of $1.13bn for the quarter, up 8.4% on the same period a year ago. Diluted earnings per share increased 15.4% to $1.20 from $1.04 in the second quarter of 2014. For the six months ended July 31, 2015, net profit jumped 8.2% from the same period a year ago to $1.80 billion, and diluted earnings per share increased 15.9% to $1.90.

Lowe's president and CEO Robert A. Niblock, who recently presented at the Global DIY Summit in London, said of the figures: "We posted solid results for the quarter and were able to capitalise on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment. I would like to thank our employees for their hard work and commitment to serving customers during this important selling season."

He added: "Our year-to-date earnings per share performance was in line with our expectations. This, together with the execution of our strategic priorities, gives us confidence in our business outlook for 2015."

Meanwhile, The Home Depot reported sales of $24.8bn in Q2 2015 - an increase of 4.3% from the second quarter of its 2014 financial year.

Net profit for the second quarter of fiscal 2015 reached $2.2bn, or $1.73 per diluted share, compared with a net profit of $2.1bn, or $1.52 per diluted share, in the same period of its 2014 fiscal year.

The Q2 results include a pre-tax net expense of $92m related to the company's 2014 data breach. This expense includes an accrual for estimated probable losses that the company expects to incur in connection with the claims made by the payment card networks. The same quarter also reflects a pre-tax gain on sale of $144m related to the sale of the remaining portion of the company's equity ownership in HD Supply Holdings, Inc. Adjusting for these two items, diluted earnings per share for the second quarter of fiscal 2015 were $1.71.

The Home Depot chairman, CEO and president Craig Menear said of the results: "We were pleased with this quarter's results. We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market."

Finspreads.com senior market analyst Fiona Cincotta said of Home Depot's results: "Home Depot overwhelmed the markets with its performance and consequently has seen an increase in its target price from $124 before the earnings release to $131.3 after it. The stock price is up 47% over the past 12 months.”
Read more of her comments in the August 28 issue of DIY Week.