Depot’s Decker points to merchandise moves

How strong was Home Depot’s first quarter performance? Not even the historic California drought could derail the retailer’s growth. Consider this: the Western division’s indoor and outdoor garden departments both posted comps above the company average.

“We’re featuring more water-saving products and landscape options like moisture control soils & mulches, drip irrigation systems, and drought resistant plants, like succulents,” said Ted Decker, executive VP of merchandising for Atlanta-based Home Depot. “In addition, our stores in California are holding clinics to educate customers on these products and how to reduce water usage.”

Home Depot yesterday posted sales of $20.9 billion in the first quarter, and net earnings of $1.6 billion – up 14.5% from the same quarter last year. Comps for U.S. stores were up 7.1%.

In his remarks to Wall Street analysts, Decker credited Mother Nature’s return to normalcy and a successful Spring Black Friday event for some of the sales success. Across the country, comps in gardening tools, soils and mulch, watering, live goods and patio were all above the company average.

Other over-performing departments were tools, décor, lighting, plumbing and appliances. And overall, the pro focused merchandise performed well, with double-digit comps in siding, power tools, commercial lighting, fencing and power tool accessories.

“The core of the store continued to perform well across the country, as we saw strength in maintenance and repair categories,” Decker said.

Below the company average, but still positive, were kitchen and bath, lumber, hardware, millwork, building materials, paint, flooring, and electrical.

Looking ahead, Home Depot is introducing a new lineup of DeWalt and Makita pneumatic nailers. Also new is a 58-volt lithium-ion battery platform from Echo featuring trimmers, blowers, chainsaws and lawnmowers. Home Depot also added an assortment of Owens Corning shingle products in certain areas, including California.