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Home Depot web sales increase nearly 40% in Q3

November 18, 2014 04:13 PM
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Web sales for The Home Depot Inc., No. 16 in the Internet Retailer Top 500 Guide, increased “almost 40%” year over year in the retail chain’s fiscal third quarter, says president and CEO Craig Menear. The chain does not release specific e-commerce figures.

“We saw increased traffic to our sites, growth in online conversion and an increase in the number of orders being picked up in the store in the quarter,” he said today during a conference call with analysts. He added that nearly 40% of the chain’s online orders are picked up inside stores by consumers through the retailer’s buy online, pick up in-store and buy online, ship to store programs. “This year we are installing dedicated storage bays in 550 stores to improve the customer experience,” he told analyst on the call to discuss Home Depot’s Q3 earnings.

Executives from the retail chain also addressed the data breach it suffered between April and September that resulted in53 million e-mail addresses and data from 56 million payment cards being stolen. Gross breach-related costs in the fourth quarter will amount to about $27 million—or about $6 million after insurance reimbursement—said chief financial officer Carol Tome. That compares with after-insurance breach costs of $28 million in the third quarter, off a gross of about $43 million in losses from the attack.

For fiscal 2014, those breach costs will reach some $34 million after insurance, Tome added.

So far Home Depot has not noticed any consumer impact from the breach. “We were very, very pleased with the fact that we had positive transaction growth in each month during the quarter, and I think that represents strength for our customers, confidence in the Home Depot and we appreciate that,” Menear said. Total customer transactions for the three months ended Nov. 3 increased 3.2% year over year to 355.4 million, with the average ticket up 2.3%, to $57.55, according to the chain’s financial report.

For the period ended Nov. 3, Home Depot reported:

  • No percentage of how much of the chain’s total sales came from online shoppers. Based on the approximate 40% growth figure, Home Depot’s e-commerce revenue increased from an Internet-Retailer estimated $584.1 million in the chain’s 2013 third quarter to about $817.7 million this quarter.
  • Net sales topped $20.51 billion, up about 5.3% from $19.47 billion.
  • Net earnings increased about 14.0% to nearly $1.54 billion from $1.35 billion.

For the first nine months of the fiscal year, Home Depot also reported:

  • Net sales of $64.01 billion, up 4.7% from nearly $61.12 billion.
  • Net earnings grew 13.7% to about $4.97 billion from $4.37 billion.
 

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