Hardware Retailing The Industry's Source for Insights and Information
Several major big-box retailers and manufacturers recently released their Q1 2022 financials; here’s a look at how each performed in the first quarter of this year.
The Home Depot
The Home Depot reported $38.9 billion in sales for the first quarter of 2022, up $1.4 billion or 3.8 percent from the same time period in 2021. Comparable sales increased 2.2 percent, and comparable sales in the U.S. was up 1.7 percent. The company reported net earnings of $4.2 billion, up from $4.1 billion last year, and $4.09 per diluted share, a jump of 6 percent from Q1 2021.
“Fiscal 2022 is off to a strong start as we delivered the highest first quarter sales in Company history,” says Ted Decker, CEO and president. “The solid performance in the quarter is even more impressive as we were comparing against last year’s historic growth and faced a slower start to spring this year. These results are a direct reflection of our associates’ continued ability to effectively navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers.”
Lowe’s
In the first quarter of 2022, Lowe’s net earnings were at $2.3 billion, down slightly from the $24.4 billion in earnings from the first quarter of 2021. Diluted earnings per share (EPS) were $3.51, compared to $3.21 in Q1 2021. Comparable sales were down 4 percent, while pro customer sales increased 20 percent.
“Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April. Because 75 percent of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures. Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May,” says Marvin R. Ellison, Lowe’s chairman, president and CEO. “This quarter we delivered over 65 basis points of operating margin improvement, driven by our Total Home strategy and the execution of our Perpetual Productivity Improvement or PPI initiatives. Despite some increased uncertainty in the macro environment, we remain confident in the outlook for the home improvement market and our ability to deliver operating margin expansion in 2022. I would like to thank our front-line associates for their ongoing commitment to our customers and our communities.”
Sherwin-Williams
The Sherwin-Williams Company shared its first quarter 2022 financial results, which showed a consolidated net sales increase of 7.4 percent to $5 billion. Net sales from stores in the U.S. and Canada that have been open for more than 12 calendar months increased 3.8 percent during the quarter.
Diluted net income per share decreased to $1.41 per share in the quarter compared to $1.51 per share during Q1 of 2021. Adjusted diluted net income per share decreased to $1.61 per share, down from $2.06 per share in Q1 2021.
“Our team delivered results in line with our expectations in an environment characterized by strong demand, ongoing cost inflation and choppy raw material availability that improved meaningfully in the final weeks of the quarter,” says chairman and chief executive officer, John G. Morikis. “We believe we are through the worst of the industry supply chain challenges, and the incremental architectural capacity we added late last year positions us well for the upcoming architectural painting season. We are a stronger and more nimble company than ever before, and the resolve and determination of our 61,000 global employees has never been higher. We remain confident in our strategy, our capabilities and the differentiated product and service solutions we bring to customers, as we expect to continue to outgrow the market long-term.”
Target
Boosted by frequently purchased categories like food and beverage, beauty and household essentials, Target saw comparable sales grow 3.3 percent in Q1 2022, adding to the 22.9 percent increase from last year. Traffic increased 3.9 percent, and store comparable sales jumped 3.4 percent. Total revenue reached $25.2 billion, up 4 percent from 2021.
“Our first-quarter results mark Target’s 20th-consecutive quarter of sales growth, with comp sales growing more than 3 percent on top of a 23 percent increase one year ago,” says Brian Cornell, chairman and chief executive officer of Target Corporation. “Guests continue to depend on Target for our broad and affordable product assortment, as reflected in Q1 guest traffic growth of nearly 4 percent. Throughout the quarter, we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations, and well below where we expect to operate over time. Despite these near-term challenges, our team remains passionately dedicated to our guests and serving their needs, giving us continued confidence in our long-term financial algorithm, which anticipates mid-single digit revenue growth, and an operating margin rate of 8 percent or higher over time.”
Tractor Supply Company
Tractor Supply Company shared its Q1 financials, including a net sales increase of 8.3 percent to $3.02 billion, comparable store sales up 5.2 percent and a diluted EPS of $1.65, up from $1.55 last year. Comparable store sales for the first quarter of 2022 were driven by comparable average ticket growth of 6.7 percent and a decline in comparable average transaction count of 1.4 percent. Gross profit increased 7.4 percent to $1.06 billion from $983.8 million in the prior year’s first quarter.
“The Tractor Supply team delivered strong results with another quarter of record sales and earnings despite having a difficult comparison from last year’s record sales, ongoing supply chain constraints and the Omicron surge. My thanks and appreciation go out to the 46,000 team members at Tractor Supply for their dedication to each other and our customers while staying nimble and successfully navigating a wide range of macro challenges. Our team members continue to be the key driver of our success,” says Hal Lawton, Tractor Supply’s president and CEO.
Walmart
Walmart posted a strong first quarter in 2022 with total revenue of $141.6 billion, up 2.4 percent. Growth was negatively affected by $5 billion due to divestitures. Walmart U.S. comp sales grew 3 percent, and e-commerce growth was at 1 percent. Walmart International net sales were $23.8 billion, a decrease of $3.5 billion, or 13 percent, negatively affected by $5.0 billion due to divestitures.
“Across our businesses, we had a strong topline quarter. We’re grateful to our associates for their hard work and creativity,” says Doug McMillon, president and CEO. “Bottomline results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future.”
Click here for the Q4 2021 and 2021 end-of-the-year financial reports from each of these retailers.
