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Nov 01, 2020

Home Depot Q3 2020 Earnings Report

Home Depot experienced exceptional demand for home improvement projects.

Key Takeaways

The Home Depot reported sales of $33.5 billion for the third quarter of fiscal 2020, an increase of 23.2 percent from the third quarter of fiscal 2019. Net earnings for the third quarter of fiscal 2020 were $3.4 billion, or $3.18 per diluted share.

Sales increased by 23.2% compared to the same quarter last year.

Comparable sales were positive 24.1%.

Net earnings reached $3.4 billion, or $3.18 per diluted share.

The company is investing approximately $1 billion in annualized permanent compensation enhancements for frontline, hourly associates.

Total Revenue
$33.5B
Previous year: $27.2B
+23.2%
EPS
$3.18
Previous year: $2.53
+25.7%
Comparable Sales Growth
24.1%
Customer Transactions
453.2M
Previous year: 400.9M
+13.0%
Average Ticket
$73
Previous year: $66.4
+10.0%
Gross Profit
$11.5B
Previous year: $9.39B
+22.0%
Cash and Equivalents
$14.7B
Total Assets
$66.9B

Home Depot

Home Depot

Forward Guidance

The Home Depot is not providing specific forward guidance but is focusing on investments to enable market share growth.

Positive Outlook

  • Continuing to invest in the business.
  • Focusing on associates and customers.
  • Adapting effectively to the high-demand environment.
  • Investing in permanent compensation enhancements for frontline, hourly associates.
  • Believing investments are critical in enabling market share growth in any economic environment.

Challenges Ahead

  • Impact on business, operations and financial results of the COVID-19 pandemic.
  • State of the economy.
  • State of the housing and home improvement markets.
  • International trade disputes.
  • Public health issues (including pandemics) that could disrupt supply or demand.