Home Depot Earnings Call Summary
Home Depot (NYSE: HD) released its first-quarter earnings for 2014 Tuesday morning, and in an earnings conference call, management discussed the impact the weather had on performance, operations and future operations.
- Wasn't able to quantify what effect the weather had on performance, but spoke in a qualitative manner about the performance of the company during these storms.
- Management's 2014 sales plan is based on U.S. GDP sales forecasts and the assumption that normal weather would be expected.
- Management expects to see first-quarter revenues that were hindered by the storm to come up in the second-quarter.
- With infrastructure damaged as a result of the storm, management expects to increas demand to repair these problems and increase revenue for stores in the upcoming quarter.
- Management expects the harsh winter affected comp. sales by -100bp.
- Expects fiscal 2014 sales to increase 4.8 percent.
- With improved weather, the company is seeing improved business in seasonal business areas.
- Management expects the current inventory of $500M to come down with robust sales in May.
- Saw online (.com) sales growth of $232M YoY.
- Noted that weather produced very little difference regionally in .com sales.
- Showroom model of business sees expansion in appliance showcases due to average customer behavior in the store spending time in there. Cutting down kitch showcase areas.
- Expanding Pro service to allow customers to track and manage orders throughout the production and delivery process.
- By accommodating and working with small- and large-scale vendors, Management sees Pro feature to bring 100 percent electronic interchange data (EDI).
Home Depot shares were trading up 2.76 percent to $78.61 in Tuesday morning's trading.
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