The Home Depot Reports Sales, Earnings Up In Second Quarter

The Home Depot® reported net earnings of $1.86 billion for the second quarter ended July 30, up 9.8% compared with fiscal 2005. Excluding a one-time tax charge assessed in Quebec, its net earnings rose 13.4%. Sales increased 16.7% to $26 billion.

Total sales in the Supply segment grew by 325% to $3.5 billion, accounting for about 13% of the company's consolidated sales. This was driven by recent acquisitions, including Hughes Supply, as well as double-digit organic growth, the company said. HD Supply's operating margin was 7.5%, up from 7.2% last year.

“Our integration of Hughes Supply is exceeding our expectations,” Bob Nardelli, chairman, president and CEO of Home Depot, said in a conference call following the release of the quarterly results.

Over the last few months, Home Depot Supply acquired four additional companies: Western Fasteners, a distributor of construction fasteners, power tools and accessories, which operates eight branches located in Colorado, Texas, New Mexico and Arizona; Texas Contractors Supply, a distributor of forming, concrete accessories, tilt-wall and power tools, which operates five distribution centers in Texas; Rice Planter Carpets, a provider of flooring design, sales and installation services to local, regional and national home builders through two locations in South Carolina; and Forest Products Supply, a supplier of lumber, doors, architectural millwork and windows through two locations in Florida.