Table of Content
Comps in the U.S. were positive 25% for the quarter with positive comps of 27.3% in May, 27.3% in June and 21% in July. As you heard from Craig and Ted, the strong demand we saw was broad-based with a high degree of performance uniformity among our three U.S. Our team continues to work to promote a safe shopping environment. We made several adjustments in the quarter to our operating approach. First, we expanded our operating hours from 6 pm to 8 pm This action was taken to relieve the end-of-day bottlenecks we observed in some stores while were operating under more restrictive hours. I -- I would -- I would disagree with your last statement but I can tell you that our focus is driving incremental operating profit dollar growth and earnings growth.
Richard, if I heard right, I think you -- you said there was about $2 billion of costs that were present in '20. Thank you for your participation in today's call. And Christine, we're now ready for questions. Our final question comes from the line of Mike Baker with Nomura. Our next question comes from the line of Elizabeth Suzuki with Bank of America Merrill Lynch.
Home Depot (HD) Q4 2020 Earnings Call Transcript
I'll let Bill jump in with a little bit more color as to what we're seeing in terms of major markets -- the markets where there's still a little pressure as it relates to permitting results. We believe our differentiated ecosystem will continue to drive deeper engagement with our Pro customers. Our DIY customers are reengaging with their home and with The Home Depot in a meaningful way, and they are engaging across the store. As an example, we decided to cancel our annual Memorial Day event and adjust other spring events as we didn't want to drive even more traffic into already crowded areas of our store like garden and paint.
But in a few short months, we were able to successfully transition 100% of our workshop content online. The live streaming platform has allowed us to go from an average of five in-store workshops per month to approximately 40 online live streaming workshops per month. And that is, if you back out our garden business, our seasonal business, we were north of 20% comps even with that backed out. So this isn't a quarter that was dependent upon our seasonal business.
This Time Is Different
And we also saw a third of recently acquired customers reengage with The Home Depot for another purchase in a different department. During the second quarter, our mobile app saw a record number of downloads, and we saw significant growth in conversion rates across all digital platforms. These results confirm our belief that we have been making investments in the right areas of our business and that those investments are resonating with our customers. To me, it makes sense that Home Depot is currently trading down more than 1% after earnings, while the stock was up roughly 3% pre-market. As already mentioned in this article, the stock is up 30% year to date, trading at 2.8x sales. I strongly believed that traders used the good news to sell some of the shares they bought when housing sentiment was low.
Kitchen and bath, we said it was just under double digit. So again, it was the heavy installation of kitchen-oriented product. But just super strength and add that we'd like the medium and longer-term implications of this. I mean really, the strength we had in the business was throughout the categories as well as throughout our geographies. We were super pleased with that performance and that growth in the second quarter.
Questions & Answers:
And I'll let Ted share some color on how we're seeing the engagement in indoor. We might defer several hundred million, probably less than $0.5 billion that could be pushed into next year. Depending on the size of that deferral, 2021 capex may look more similar to 2020 levels. And from an expense perspective, the deferral is lower than the capital deferral. It actually was not supply chain or demand.
If we think about what transpired over the past couple of years at the quarterly level of investments then I think ramp from 75 which was considered business as usual to this 325. Any -- any more detailed commentary would be -- would be helpful. First of all, you know, we're thrilled with the acquisition of HD Supply. They are clearly a leader in the MRO space and it -- and it really strengthens our position in a $55 billion fragmented market opportunity. Well, Simeon, thank you for your question.
Customers can now shop our leading and exclusive lineup by platform including Makita, Milwaukee, Ryobi, Toro, and Dewalt. We are thrilled with the results and expect these resets will be complete in the first quarter. This Spring, we're excited to introduce a new lineup of outdoor power from Ryobi, the No. 1 cordless outdoor power brand.
We will see benefits from that over time. It takes a while for that to work our way through the system. There are areas where homeowners are becoming more comfortable with having Pros and service providers in their homes. There are some end markets that haven't totally recovered. I'll give you one example, and that would be multifamily property managers. Obviously, there are slower turns on the units.
While transactions were down and ticket was up, and that was driven by units per transaction. People were definitely consolidating trips. I mean, we -- at this point, as I said earlier, we're looking at what's customer behavior, what's the sentiment?
We're monitoring that incredibly closely. We are -- we operate on short cycle and the things that are most critical to that which is our labor planning and inventory planning. And we really don't know how to extrapolate from where we are to what the future is. What we know is we have to rely on the capabilities that we've built to be flexible and to adjust to be able to deal with whatever gets thrown at us. I would say going forward, we'd continue to have modest, modified events, but of net benefit with promotions. David and Tom just revealed what they believe are theten best stocksfor investors to buy right now...
No comments:
Post a Comment