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Home improvement retailer Home Depot reported Q4 net income of $0.50 per diluted share, on revenue of $16.01 billion. Sales were up 5.9 per cent from a year ago.Full year 2011 revenue totaled $70.4 billion, a 3.5 per cent increase on the previous year. CEO Frank Blake said 2011 results exceeded the company’s expectations.
The company expects to open 11 new stores in 2012. It also expects $3.5 billion in share repurchases.
Home Depot earnings are important because they show homeowners’ willingness to spend on fixing up their homes. Here are some details from the report:
- Number of customer transactions were pup 3.6 per cent from a year ago to 303 million.
- It’s average ticket was up 2.4 per cent. Higher average ticket numbers show whether homeowners are responding to reports about the job market and housing recovery.
- A WSJ report suggests that the November through January period is seasonally the weakest for home improvement and is usually marked by sales of snow equipment, like shovels. A milder winter is expected to see this change in fourth quarter results.
- Janney Capital Markets analyst David Strasser told Reuters the warm temperatures helped same-store sales by about 2 to 2.5 percentage points.
Click here for the full release.