Home Depot points to Q1 merchandise winners
Home Depot said it saw broad-based growth across the store, with all of its merchandising departments showing positive comps in the first quarter.
Still, some aisles performed better than others, and company executives shed light on some of its big wins during its earnings presentation this week.
As reported, comp-store sales in the U.S. were up 7.4%. “We saw a healthy balance of growth among both our Pro and DIY categories, with Pro outpacing our DIY business in the U.S.,” said CEO Craig Menear.
Total transactions increased 4.0%, and the average ticket increased 2.5%, said Ted Decker, executive VP merchandising.
The company’s average ticket increased, despite commodity price deflation -- mainly from lumber and copper, he said. Such deflation cost the company about 15 basis points of ticket growth.
Leading the charge, with comps better than the company average, were the following departments: appliances, tools, building materials, lumber, lighting, hardware, millwork and decor.
“Pro heavy categories continued to show great strength, as we saw double-digit comps in fencing, pressure-treated decking, boards, fasteners, doors and conduit,” Decker said.
Below the company average, but still positive, were electrical, paint, flooring, indoor garden, kitchen and bath, plumbing and outdoor garden.
Big-ticket spending was up in the first quarter. Transactions for tickets above $900 gained 9.5%. Decker pointed to sheds, roofing, appliances and windows as drivers of big tickets. Each of these categories saw double-digit comps.
Transactions for tickets under $50 also increased -- up 2.7%.
Decker shared with analysts a few product pushes coming in the second quarter. Among them, a new Milwaukee Pneumatic Framing Nailer, the latest addition to the M18 FUEL lineup. Also, a 20V MAX Brushless Finish Nailer from DeWalt. “These are great examples of innovative and exclusive products from trusted, best-in-class Pro brands,” he said.
In the DIY space, the launch of Pergo Outlast Plus is expected to reap dividends. And events such as Thrill of the Grill and Fourth of July will take advantage of the outdoor season, he said.
The company raised its guidance as a result of its performance and projections.
“Though it is early in the year, our view of the macro environment remains consistent,” said Menear. “We believe that housing data indicates continued tailwinds for our business.”