Dive Brief:

Home Depot busted through analysts’ expectations with its fourth quarter income statement, posting AN overall same-store sales rise of five.8% (including U.S. same-store sales growth of vi.3%), well past the agreement Metrix analyst expectation for three.5%.

the house improvement merchant reportable this fall internet earnings of $1.7 billion, or $1.44 per diluted share, compared to $1.5 billion or $1.17 per diluted share within the year-ago quarter — well past Thomson Reuters expectations for $1.34 per share on $21.81 billion in sales.

In cycle with its this fall earnings beat, Home Depot’s board of administrators approved a $15 billion share repurchase program, exchange its previous authorization, causing shares up one.8% Tuesday morning.
Dive Insight:

As the economy continues to hum and property values keep steady, yankee shoppers square measure tilling their cash into their homes — defrayal several see as AN investment, not merely AN indulgence. the amount of client transactions reception Depot within the quarter rose two.9% year over year, whereas average price tag price rose two.9% and sales per area unit rise five.7%.

Home Depot chief operating officer Craig Menear in his statement Tuesday attributable the sturdy housing marketplace for the company’s sturdy quarter, however conjointly praised the company’s own growth initiatives. “Our specialize in providing localized and innovative product choice, up the interconnected client expertise, and driving productivity resulted in record sales and internet earnings for 2016,” he said.

GlobalData Retail analyst Håkon Helgesen was fittingly affected, observing in an exceedingly note emailed to Retail Dive that additional extreme weather this year contributed to the retailer’s sensible results (e.g., causing customers in to shop for snow blowers). however Helgesen conjointly same that “thanks to its flexibility, Home Depot performs well regardless of the weather… In 2015, the corporate took advantage of hotter temperatures to push outside comes a lot of later into the season; this year its focus switched to winter care and readiness product. In essence, Home Depot manages events, as well as the vagaries of the weather, in an exceedingly manner that such a large amount of alternative retailers don’t.”

Improved client confidence is additionally supply defrayal on bigger-ticket things like appliances, Helgesen noted, with Home Depot profiting from Sears’ struggles within the class.

Thanks to enhancements in delivery and fulfillment and omnichannel services, viscousness rendered by will increase in its mastercard membership, further as inventory enhancements, Home Depot is poised to continue its success — bumping up against its own performance once it involves growth, consistent with Helgesen.

“[S]ales growth rates can weaken, however not considerably thus, and solely attributable to stiffer comparatives,” he said. “Moreover, we have a tendency to believe that improved efficiencies, as well as delivery from store and higher stock allocation, can facilitate to go up profit across 2017.”