Big-box retailer Home Depot reported today better-than-expected third-quarter profits and sales, topping analysts’ predictions.
The company announced sales of $23.2 billion for the third quarter of fiscal 2016. This is a 6.1 percent increase from the third quarter of fiscal 2015. Comparable store sales were positive 5.5 percent, and comp sales for U.S. stores were positive 5.9 percent.
Home Depot’s increasing sales may be due to higher wages and rising home values, Fortune says. Plus, tightening for-sale inventories in many markets have spurred remodeling from homeowners.
Net earnings for the third quarter of fiscal 2016 were $2.0 billion, or $1.60 per diluted share. This is compared with net earnings of $1.7 billion, or $1.35 per diluted share, in the same period of fiscal 2015.
“We experienced balanced sales growth in the quarter driven by an increase in both ticket and transactions, and our continued focus on productivity drove double-digit earnings-per-share growth,” says Craig Menear, chairman, CEO and president. “I would like to thank our associates and suppliers for their hard work and dedication to our customers throughout the quarter.”
Departments that experienced increases include appliances, lumber, tools, outdoor and indoor garden, lighting, decor and flooring. Pro categories that experienced growth include commercial and industrial lighting, fencing, plywood, pressure-treated decking and interior doors. Home Depot highlighted this and other achievements in this third-quarter infographic.
Home Depot currently operates a total of 2,276 retail stores in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, Guam, 10 Canadian provinces and Mexico. Currently, the company employs more than 385,000 associates.