The Home Depot, Inc. (NYSE:HD) Q2 2019 Earnings Conference Call - Final Transcript

Aug 20, 2019 • 09:00 am ET


The Home Depot, Inc. (NYSE:HD) Q2 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Home Depot Second Quarter 2019 Earnings Conference Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to introduce your host Isabel Janci. Please go ahead.

Isabel Janci

Thank you and good morning, everyone Joining us on our call today are Craig Menear, Chairman, CEO and President; Ted Decker, Executive Vice President of Merchandising; and Carol Tome, Chief Financial Officer and Executive Vice President, Corporate Services. Following our prepared remarks, the call will be opened for questions. Questions will be limited to analysts and investors. And as a reminder, please limit yourself to one question with one follow-up. If we are unable to get your question during the call, please call our Investor Relations Department at 770-384-2387.

Before I turn the call over to Craig, let me remind you that today's press release and the presentations made by our executives include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to, the factors identified in the release and in our filings with the Securities and Exchange Commission. Today's presentations will also include certain non-GAAP measures, reconciliation of these measures is provided on our website.

Now let me turn the call over to Craig.

Craig Menear

Thank you, Isabel and good morning, everyone. Sales for the second quarter were $30.8 billion, up 1.2% from last year. Comp sales were up 3% from last year with US comps of positive 3.1%. Diluted earnings per share were $3.17 in the second quarter. We are pleased with these results. We overcame a tough May and continued lumber price deflation to deliver accelerating comp performance throughout the core. Looking at our results geographically, all of our US divisions posted positive comps. 17 of 19 US regions also posted positive comps with the exceptions being our Gulf and Florida regions, which delivered high storm-related comps last year.

Internationally, Mexico posted high-single digit positive comp and Canada posted low-single digit positive comp, both in local currency. We saw broad-based growth across the stores; both comp ticket and transactions grew. With the exception of lumber, all of our merchandising departments posted positive comps. We saw a healthy balance of growth among both Pro and DIY categories, with Pro sales outpacing our DIY business in the US. As Ted will detail, we continue to invest in a portfolio of service offerings to deepen our level of engagement with the Pro. We know that the more dimension our relationship is with this customer, the more they spend.

From a strategic perspective, I'm encouraged by the progress we are making to deliver the One Home Depot experience, a seamless interconnected shopping experience for our customers. Our in-store investments are focused on ease of navigation and improved speed to checkout. We have implemented our wayfinding sign and store refresh