HD Home Depot Inc

By Matt Grossman 

Home Depot Inc. reported higher sales in the latest quarter despite the large scale disruption caused by the coronavirus pandemic, but the company's expenses rose sharply as it boosted workers' pay and benefits.

Revenue in the fiscal first quarter was $28.26 billion, compared with $26.38 billion a year earlier. Analysts expected $27.56 billion, according to FactSet.

Customers spent $74.70 per transaction during the period that stretches from February to May, up 11% from a year earlier. The number of transactions fell 3.9% to 374.8 million. Comparable sales rose 6.4% overall, and 7.5% in the U.S.

Despite positive sales trends in the first quarter and the first two weeks of the latest quarter, the company also withdrew its guidance for the year, citing the uncertainty of the pandemic.

Shares of Home Depot fell 1.7% in premarket trading after hitting an all-time trading high of $248.32 a share on Monday.

Against the backdrop of a declining stock market, Home Depot stock has outperformed this year. The company's shares have risen 12.4% since the start of the year, a period when the S&P 500 index has declined overall.

Expenses totaled $6.4 billion, up 17% from a year earlier, as the company paid weekly bonuses and higher overtime pay for hourly workers, as well as expanded benefits such as paid time off and dependent care.

Home Depot's profit declined to $2.24 billion, or $2.08 a share, from $2.51 billion, or $2.27 a share, for the same period a year earlier. Analysts were expecting a profit of $2.30 a share.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

May 19, 2020 08:21 ET (12:21 GMT)

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