The Home Depot Inc.'s (HD, Financial) stock lost about 2.8% in Tuesday morning trading despite the company reporting second-quarter EPS $2.25 on revenue of $28.1 billion, beating profit estimates by 4 cents per share and revenue expectations by $300 million.
Revenue in the second quarter inched up 6.2% from the same quarter a year ago. Comparable store sales grew 6.3% and comp sales for U.S. stores 6.6%. Net earnings were $2.7 billion, or $2.25 per diluted share, compared to $2.4 billion, or $1.97 per diluted share, in the same quarter of fiscal 2016. For the second trimester, diluted earnings per share increased 14.2% from the same period in the previous year.
Craig Menear, chairman, CEO and president, said, "We also achieved the highest quarterly net earnings in company history. These results were made possible by our hard-working associates and the outstanding values brought forth by our supplier partners."
For fiscal 2017, sales growth guidance is 5.3%, and comp sales will be up about 5.5%. Further, diluted earnings per share is expected to grow 13.0% to $7.29. The company's diluted EPS growth guidance includes $7 billion of share repurchases for fiscal 2017.
Coach Inc. (COH, Financial) is losing ground by 13% as the company reported fourth-quarter EPS of 50 cents on revenue of $1.13 billion. Sales decreased by 1.7% year over year. The figure misses estimates by $20 million. On the other hand, profits exceeded by 1 cent per share.
Gross profit was $755 million, and gross margin was 66.5% higher 130 basis points from the prior year. On a non-GAAP basis, gross profit reached $757 million, and gross margin was 66.8%, 100 basis points less than the prior year.
By segments, total North American Coach brand sales were $586 million versus $606 million last year. International Coach brand sales were $442 million as compared to $450 million last year. Greater China sales increased 3% versus the prior year in dollars offsetting the weak activity in Hong Kong and Macau. In Japan, on a 13-week basis, sales declined 3% in dollars while Europe had double-digit growth in the directly operated channels.
Net sales for the Stuart Weitzman brand were $88 million, up from $84 million reported in the same trimester of last year. Net sales increased 15% on a reported basis and 16% on a constant currency basis. Further, gross profit totaled $49 million on a reported basis while gross margin for the quarter was 56.2%, higher than the 54.8% in the previous year.
Disclosure: The author holds no position in any stocks mentioned.
