Home Depot is building a banner year, 3Q numbers stun

FILE - In this April 3, 2020 file photo, a Home Depot customer pushes a cart loaded with supplies in New York. Home Depot is buying HD Supply Co., a distributor of maintenance, repair and operations products in the multifamily and hospitality end markets, in a deal valued at about $8 billion. The transaction is expected to close during Home Depot's fiscal fourth quarter. (AP Photo/Mark Lennihan, File)

People being stuck at home has led to an explosive year for Home Depot and its latest quarter is no exception.

Third-quarter sales surged 23% and the home improvement chain beat expectations by almost any measure.

Revenue totaled $33.54 billion for the three months ended Nov. 1, topping the $31.83 billion that analysts polled by FactSet predicted.

“We saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year,” Chairman and CEO Craig Menear, said in a prepared statement.

Sales at stores open at least a year, a key gauge of a retailer’s health, climbed a stunning 24.1%, topping even the lofty projections for a 17.2% increase on Wall Street. In the U.S., where the coronavirus has run unchecked and kept millions at home, those sales jumped 24.6%.

The Atlanta company earned $3.43 billion, or $3.18 per diluted share, compared with $2.77 billion, or $2.53 per diluted share, a year earlier. The performance beat the $3.05 per share projected by analysts surveyed by FactSet.

Home Depot Inc. also said Tuesday that it’s making temporary financial support programs for its frontline, hourly employees, such as a weekly bonus program, permanent. The value of that program is being put at about $1 billion on an annualized basis.

On Monday Home Depot said it was reuniting with former subsidiary HD Supply in a deal valued at about $8 billion. The acquisition will give Home Depot a stronger hand in the contractor and professional side of its business, which has boomed during the pandemic, like its more consumer facing, DIY sales.