Web sales top $1 billion for Home Depot in Q1
May 26, 2015 01:38 PM
The first quarter online was another stellar one for The Home Depot Inc. with e-commerce sales that increased 30%. With a growing web channel, Home Depot, No. 10 in the Internet Retailer 2015 Top 500 Guide is finding better ways to use stores, social media and mobile commerce to connect with its shoppers, CEO Craig Menear told Wall Street analysts last week on the company’s first-quarter earnings call.
“We not only offered more spring season product online, but also leveraged digital media channels to highlight local in-store assortments and create footsteps to our stores. In the store, our mobile app helped customers identify product locations with our enhanced product locator,” Menear told analysts.
For the first quarter ended May 3, Home Depot reported:
- E-commerce grew 30%. Based on that metric and past financial reports Home Depot has filed with the U.S. Securities and Exchange Commission, Internet Retailer estimates web sales in the first quarter totaled $1.075 billion compared with $826.98 million in the first quarter of 2014, up just under 30%.
- Internet Retailer also estimates the web accounted for 5.1% of total sales compared with the 4.2% Home Depot reported in its Q1 2014 quarterly report.
- Total sales increased 6.1% to $20.89 billion from $19.69 billion in the prior year.
- Comparable-store sales increased 6.1%.
- Net earnings were $1.57 billion compared with $1.38 billion in the first quarter of 2014.
Though not going into many specifics, Home Depot in the quarter continued to refine its buy online and pick-up in store policy, which in 2014 accounted for 40% of all e-commerce transactions, Menear told analysts.
“For the quarter our online sales grew almost 30% and with our digital properties being our virtual storefront we were pleased with online traffic growing double digits in the quarter as well. We will continue to invest in mobile, search and creating a frictionless transaction across the different channels,” Menear said.
Home Depot is one of four finalists for Internet Retailer of the Year, along with Amazon.com Inc., Etsy Inc. and Wal-Mart Stores Inc. The winner will be announced at the inaugural Internet Retailer Excellence Awards, which will be presented the evening of June 3 at a banquet in Chicago at IRCE 2015, the leading e-commerce conference and exhibition in North America.