Boston, MA 08/20/2014 (wallstreetpr) – A chain of home improvement retailer, The Home Depot, Inc. (NYSE:HD) Chief Financial Officer, Carol Tome, said that the company expects to record 80 basis points improvement in its same-store sales in the second half of the current fiscal year than the first half. The optimism comes on the backdrop of recovery in the housing market.
The Home Depot, Inc. (NYSE:HD)’s CFO told during a conference call that it could see a nice recovery in demand in view of housing market recovery and building contractors and customers have started to feel better on investing in homes, Reuters reported. The home improvement retailer generated significant part of its business from building contractors.
However, the CFO had voiced his concern over the mortgage financing availability since one-third of the Americans in the age group of 18 – 36 preferred to live with their parents. He added that something needed to be done and that it would pay close attention to that.
Home Depot had confirmed that it expects its sales to be about 4.8% higher than the fiscal year 2013, which was in line with the Wall Street analysts’ consensus growth predictions. However, the company had boosted its earnings forecast to $4.52 a share from $4.42 a share predicted previously. The revised earnings per share guidance are six cents a share higher than the Street analysts’ expectations of $4.46.
The Home Depot, Inc. (NYSE:HD) indicated that the outlook included a favorable impact from its share buyback program of $3.5 billion till date apart from an additional buyback of $3.5 billion worth of shares in the remainder period of the current fiscal year.
The Home Depot, Inc. (NYSE:HD) reported net earnings of $2.1 billion, up 16.7% from $1.8 billion and earnings advanced 22.6% to $1.52 a share from $1.24 a share in the year-ago quarter. The company’s sales grew 5.7% to $23.8 billion from $22.52 billion in the previous year quarter. Its comparable same-store sales recorded a growth of 5.8%, and the U.S. same-store sales advanced 6.4% during the second quarter.
The Home Depot, Inc. (NYSE:HD)’s Chairman and Chief Executive Officer, Frank Blake, attributed the sales to spring seasonal business and strong performance in its core segment.