Home Depot Says Menear Will Become Ceo Nov. 1 | Heraldnet.com – Business

Home Depot Earnings Review: Rough Weather In Q1 Gives Way To Higher Comparable Sales In Q2 – Forbes

On Tuesday, the company reported strong second-quarter results and raised its profit forecast for the full year. It said purchases of major items like appliances and water heaters improved compared to last year, and its results have been helped by the improving U.S. housing market. Home prices are starting to rise, job growth has been steady, and there are fewer troubled loans dating back to the days of the housing bubble. http://www.heraldnet.com/article/20140821/BIZ/140829711/1005/Home-Depot-says-Menear-will-become-CEO-Nov.-1

This boosted Home Depots average ticket size, which however, got dragged down due to commodity price deflation. Pro customer base is crucial for Home Depot as it forms around 35% of the companys net sales, and is growing faster than the retail consumer market at present. The companys Pro Xtra loyalty program has signed up over 1.7 million pro consumers, with over 200,000 members joining in the last quarter. Growing pro consumer base and higher average transaction sizes, as the housing market grows, should boost Home Depots top line going forward. Operating Margins Expand On Lower Workers Compensation While Home Depots gross margins remained flat in Q2, as lower-margin outdoor product categories returned to positive growth in spring and summer, the companys operating margins expanded 100 basis points year-over-year to nearly 14.5%. http://www.forbes.com/sites/greatspeculations/2014/08/20/home-depot-earnings-review-rough-weather-in-q1-gives-way-to-higher-comparable-sales-in-q2/

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