With its second-quarter earnings report, Home Depot Inc. (Atlanta) reported a spike in net profit, and the company also said during a conference call that it is picking up market share from other big box stores, according to Reuters.
Net profit at the home improvement chain rose 12.40 percent during the second quarter, rising from $1.36 billion in the second quarter of 2011 to $1.53 billion this year. Sales for the second quarter reached $20.6 billion, a 1.7 percent increase from the second quarter of 2011. Sales at comparable stores-stores that have been open at least one year-for the second quarter of 2012 rose 2.1 percent, and sales for only U.S. stores rose 2.6 percent.
"As expected, second-quarter sales reflected the pull forward of seasonal activity into the first quarter," said Frank Blake, chairman & CEO. "But we saw continued demand for core products and delivered second-quarter earnings above our expectations."
Due to this performance, Home Depot raised its earnings outlook for 2012, saying it expects sales to rise 4.6 percent from 2011. During the conference call, Blake said the company is seeing improvements in California and Florida, two states hit hard by the housing downturn. The company's pricing and customer service are helping it take market share from Lowe's, Reuters wrote.
