Home Depot revenue climbs 8.1 percent
Home Depot saw sales surge in the wake of this year’s barrage of hurricanes, but the storms still took a toll on the retailer’s bottom line.
Even as cleanup and rebuilding efforts helped the chain’s sales exceed analysts’ estimates, expenses related to the storms reduced operating profit by $51 million. Customers stocked up on less profitable plywood and generators during the disasters, which narrowed margins, the company said.
The good news is Home Depot continued to benefit from the rebound in housing prices, which spurs owners to spend more on fixing up their properties. Last quarter, values in 92 percent of metro areas rose.
Revenue climbed 8.1 percent to $25 billion, compared with analysts’ average estimate of $24.5 billion. Profit rose to $1.84 a share, exceeding the average $1.82 projection. That marked the 14th straight quarter Home Depot has surpassed projections. ALSO IN BUSINESS The parent company of T. J. Maxx and Marshalls, TJX Cos., which also operates HomeGoods, said Tuesday that revenue at established stores was flat in the third quarter compared with a year ago — the first time it didn’t post an increase since 2009. The Framingham, Mass.- based company reported fiscal thirdquarter profit of $641.4 million, or $1 per share. Warren Buffett continued to trim a once-major investment in IBM while adding to newer holding Apple in the third quarter. The billionaire investor’s Berkshire Hathaway lowered its IBM stake by about a third to 37 million shares as of Sept. 30, when it was valued at about $5.4 billion, according to a regulatory filing Tuesday. Berkshire boosted its holding in Apple by about 4 million shares.