Company Of The Day: Home Depot
Home Depot (NYSE:HD) posted a stronger than expected set of Q2 2021 earnings with EPS standing at $4.53 up from $4.02 last year. However, same-store sales growth was underwhelming, rising by about 4.5% year-over-year, compared to a Street estimate of 5.4%. Gross margins also declined 80 bps year-over-year to 33.2%.
The miss in same-store sales growth was driven partly by tough year-over-year comparisons, as customers doubled down on home improvement projects in Q2 2020. The margins decline was due to higher transport costs and supply chain issues.
Home Depot stock declined by about 4% in Tuesday’s trading following the report.
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