HD profits gaining speed in Q2

Atlanta-based Home Depot reported second-quarter net income of $1.2 billion, up 6.8% from $1.1 billion last year.

Sales for the quarter ended Aug. 2 were $19.4 billion, up 1.8% from $19.1 billion last year.

Comparable-store sales for the quarter were up 1.7% and were up 1% in the United States.

"Our second-quarter sales reflect the third consecutive quarter of positive same-store sales. We delivered solid results as we continue to build momentum with our merchandising transformation, supply chain enhancements and customer service initiatives," said Frank Blake, chairman and CEO. "I want to thank our associates for their hard work and dedication, and I am proud to announce 97% of our stores qualified for success sharing, our bonus plan for hourly associates, for the first half of fiscal 2010."

Based on its second-quarter earnings, the company updated its full-year guidance and now expects sales to be up approximately 2.6% for the year. The company also expects diluted earnings per share from continuing operations as reported to increase by approximately 22.6%.

At the end of the second quarter, the company operated a total of 2,244 retail stores, which included 1,976 Home Depot stores in the United States and employs more than 300,000 employees worldwide.