Brief - The Hustle

Home Depot sales are way up, thanks to hurricanes

Written by Wes Schlagenhauf | Jun 30, 2020 8:28:22 AM

The good ol’ Depot claims that their same-store sales boosted an extra $282m due to hurricane recovery efforts, earning them a total of $25.03B in the third quarter.

They reportedly sold “millions” in plywood, generators, and various other tools — and according to a Home Depot earnings press release, the gargantuan construction efforts across the Gulf and Puerto Rico are going to continue fueling sales through the end of the year.

One company’s fruit is multiple regions’ poison

Home Depot’s CFO, Carol Tomé told investors that the home improvement haven had $10m in hurricane-related sales in August compared to $150m in September, during the brunt of Hurricanes Harvey, Irma, and Maria.

In the press release, the company said they expected sales to bump up 6.3% from 2016, but they actually jumped to 8%, destroying Wall Street’s estimate of a 5.8% bump.

Whooo that stock

HD’s stock is up more than 23% this year — and a staggering 166% since 2012.

Despite this spike, investors still fear the U.S. housing recovery may slow down in 2018, though Tomé reassured them that they don’t see that happening for the next few years.