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Home Depot CEO Talks About Recovery, The Weather and Online Sales

Home Depot CEO Talks About Recovery, The Weather and Online Sales

Home Depot (NYSE: HD) Chairman and CEO Frank Blake was on CNBC early Wednesday, and had some interesting comments regarding recent earnings, Mother Nature and the economy in general.

As many companies have recently done, Home Depot is pointing to the recent harsh winter weather for its disappointing sales figures through February -- an overall "drag" of about $100 million. That figure may be steep but it is not as much as other companies have suffered. This past quarter Crocs (NASDAQ: CROX), the maker of colorful sandal-like slippers, said its profits were down by approximately 40 percent.

Blake also talked about Home Depot's evolving online orders and demand. He noted that more than one-third of online orders are now picked up or fulfilled out of a store location, while shopping via mobile phones and tablets is quickly approaching 35 percent of the company's online traffic this year. He's also expecting sales growth of 4.8 percent for 2014, and diluted earnings per share of $4.38 for the year.

Blake also gave his thoughts on the economic recovery -- saying 2013 was Home Depot's best year since 1999, due to the housing recovery. He believes the overall economy is continuing to show “modest improvement,” but that recovery will probably continue at a slower pace. “2014 guidance is based on housing continuing as a tailwind,”

he added.

Posted-In: construction Frank Blake Housing online salesEarnings News Guidance Retail Sales Best of Benzinga


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