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THE WORLD’S LARGEST retailer and the largest DIY retailer both released first half results this month that pleased the analysts and gave reason for optimism with ongoing talk of a “looming recession” for the US.
Indeed The Home Depot just reported sales of US$43.8 billion for the second quarter of FY2022, an +6.5% on Q2 FY2021, with comparable sales in the US +5.4%.
Net earnings for Q2 were US$5.2 billion, or $5.05 per diluted share, +11.5% on in Q2 FY2021.
“In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” says Ted Decker, CEO and President.
“Our performance reflects continued strength in demand for home improvement projects. Our team
has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and
dedication to our customers.”
Big Orange also offered a positive
outlook for FY2022, with total and comparable sales growth expected to be around 3%, an operating margin of some 15.4% and expected diluted earnings- per-share growth in the mid-single digit percentages.
Backing up this result, although noting its Q2 FY2022 growth was “partially driven by inflation” – and having just last month raised concerns about the rest
of the year – Walmart’s US Q2 comp sales were +6.5% on FY 2021 (+11.7% on FY2020), with US ecommerce growth still strong but slowing at +12% (+18% on a two-year stack).
Consolidated net sales growth for the rest of the year is expected to be about 4.5%, with US comps +3% in the second half and +4% for the full year.
By way of comparison, Lowe’s was to release its first half result just after the deadline for this issue.
https://corporate.homedepot.com/ https://corporate.walmart.com/
Calling the deal “A meaningful step
in Emerson’s continued commitment
to creating a higher growth, more diversified and cohesive portfolio,” Emerson has entered into an agreement to sell its InSinkErator business to appliance giant Whirlpool Corporation for US$3 billion, a transaction value of 18.1 x EBITDA
Known for its food waste disposers, MultiTap and Hot Tap, InSinkErator’s trailing 12-month revenue as of March 2022 was US$595 million, pre-tax earnings were US$148 million and EBITDA was us$166 million.
InSinkErator was founded in 1938
and acquired by Emerson in 1968 with new owner Whirlpool Corporation well positioned to build on the brand’s legacy and performance for long-term growth and success.
The transaction is expected to close in FY2023, subject to regulatory approvals etc and Emerson says it will work
closely with Whirlpool to help ensure
a smooth transition for customers and InSinkErator’s nearly 1,400 employees.
“We are excited for the unique opportunity to add InSinkErator to
our portfolio of leading brands. The acquisition is a clear accelerator of
our ongoing portfolio transformation and aligned with our stated goals of investing in high-growth and high- margin businesses and Win Americas,” says Marc Bitzer, Chairman and CEO of Whirlpool Corporation.
“InSinkErator is not only an iconic brand with a reputation for the highest quality and performance, but also a business that is purpose-driven and shares our vision of improving life at home. We look forward to capitalizing on the significant growth opportunities we see for this business.”
www.emerson.com https://whirlpoolcorp.com
InSinkErator
global eyes
Biggest US retailers give reason for optimism
Whirlpool buys
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AUGUST 2022 | NZHJ 33