Big-box home improvement retail chain Home Depot has announced its third-quarter 2020 financial results, reporting $33.5 billion in total sales for the quarter, up $6.3 billion or 23.2 percent from the same period in 2019.
Comparable sales for the third quarter of fiscal 2020 were positive 24.1 percent, and comparable sales in the U.S. were positive 24.6 percent, the company reports.
In total, Home Depot scored $3.4 billion in net earnings for the quarter. That figure is 21 percent higher than the same period in 2019. Compared to the second quarter of 2020, Home Depot’s total net sales fell roughly 12 percent and net earnings dropped 20 percent.
“The third quarter was another exceptional quarter for Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year,” says Craig Menear, chairman and CEO.
Additionally, Home Depot reports its e-commerce transactions have grown 80 percent over this point in 2019. About 60 percent of all online orders were picked up inside a Home Depot location, the company reports. Notably, Halloween sales achieved record heights for the big-box chain.
Investing in Employees
In addition to its latest financial report, Home Depot also announced plans to continue financially supporting its associates during the COVID-19 pandemic. Prior measures, including expanded paid time off for all hourly associates and a weekly bonus program, were temporary. Now, the company is investing in “permanent compensation enhancements” for frontline, hourly associates. The company plans to distribute roughly $1 billion of incremental compensation on an annual basis.
“Our ability to effectively adapt to this high-demand environment is a testament to both the investments we have made in the business as well as our associates’ focus on customers. We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment,” says Menear.
One day before the third-quarter financial announcement, Home Depot announced plans to acquire maintenance, repair and operations product supplier HD Supply for roughly $8 billion.
As of November 2020, Home Depot operates 2,295 retail stores in all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs roughly 400,000 people.