Home Depot Inc. (NYSE: HD), operator of the Home Depot stores, today, reported its first-quarter financial results. The Atlanta, Georgia-based company reported weaker-than-expected first-quarter sales, sending shares down sharply in pre-market trading today.
Home Depot, which is the world’s largest home improvement chain, reported first-quarter sales of $17.81 billion, representing an increase of 5.9% over the same period in the previous year. Analysts were expecting the company to report sales of $17.96 billion for the first quarter ended April 29, 2012.
According to Brian Sozzi, Chief Equities Analyst at NBG Productions, the sales miss could be linked to a mediocre increase in the average transaction value, which indicates continued so-so sales in big-ticket merchandize categories and a heavy influence from seasonal products.
Home Depot’s average transaction price climbed 2.2% to $54.51 in the first quarter. Meanwhile, sales at stores open at least a year, a key measure for retailers, rose 5.8% globally. In the U.S., same-store sales rose 6.1% in the first quarter.
Analysts were expecting Home Depot’s global same-store sales to rise 6.5% in the quarter.
Net earnings for the quarter came in at $1.04 billion, or $0.68 per share, compared with $812 million, or $0.50 per share reported for the same period in the previous year. Excluding one-time items, HD reported earnings of $0.65 per share, in-line with Street estimates.
Frank Blake, Chairman and CEO of Home Depot, said that HD saw a stronger-than-expected start to the year, driven by record warm weather and continued demand for core products.
Home Depot also updated its fiscal 2012 guidance. The company now expects sales to rise approximately 4.6% for the year on a 53-week basis. Diluted earnings per share for the fiscal year are expected to rise 17% to $2.90 per share.
HD shares are down 3.87% to $47.95 in pre-market trading today.
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