Page 36 - HW September 2020

global eyes
Desire to DIY drives
US players’ Q2 numbers
REPORTING THEIR SECOND quarters of FY2020 (Q2), the big US DIY players saw massive sales and earnings gains on the previous year.
As in New Zealand and elsewhere, whether or not their lives were locked down, American homeowners joined other nationalities in becoming more home-focused.
As well as boosting top and bottom lines, both Home Depot and Lowe’s are putting signi cant investment into what’s been called “a supply chain power surge”.
Over the next 18 months for example, Lowe’s says it will open no less than 50 cross-dock delivery terminals, seven bulk distribution centres and four e-commerce ful lment centres.
ese are not normal times. Indeed, Stephanie Smith, Home Depot’s SVP of Supply Chain Development and Delivery, has said in the media: “Retail has changed more in the past four years than in our company’s 40-year history.
“Customers expect to shop whenever, wherever and however they want – whether they’re buying a hammer or a pallet of pavers. We’re investing to meet the changing delivery needs of our DIY and pro customers, whether they’re at home, at their job sites or picking up in the store.”
Home Depot all about top line – e Home Depot’s Q2 sales were US$38.1 billion, +23.4% on the previous year, with US comparable sales +25%. Net earnings for Q2 were US$4.3 billion (+22.9%). e company has now paid a cash dividend for no less than 134 consecutive quarters.
Craig Menear, Chairman, CEO
& President: “ e investments we
have made across the business have signi cantly increased our agility, allowing us to respond quickly to changes while continuing to promote a safe operating environment. is enhanced our team’s ability to work cross- functionally to better serve our customers and deliver record-breaking sales in the quarter.”
In Q2, Home Depot invested some US$480 million in bene ts for associates, including weekly bonuses for associates
in stores and distribution centres as well as issuing a record payout for the company’s pro t-sharing program for hourly associates.
www.homedepot.com
Lowe’s better bottom line – Lowe’s Q2 sales were US$27.3 billion, +30% on the previous year, with US comparable sales +35%. Net earnings for Q2 were US$2.8 billion (+64.7%) and sales through Lowes. com increased 135%.
e company paid out US$107 million through its pro t sharing scheme, invested US$460 million in supporting its frontline associates, communities and store safety and, during the rst
half of 2020, also invested $560 million in COVID-related nancial support for its associates and $100 million in community pandemic relief.
Marvin Ellison, Lowe’s President and CEO: “We delivered very strong second quarter results, with all merchandising divisions posting comparable sales growth exceeding 20% and all US geographic regions delivering comparable sales growth of at least 30%.
“Sales were driven by a consumer focus on the home, core repair and maintenance activities, and wallet share shift away from other discretionary spending.”
Lowe’s declined to add any nancial guidance for Fiscal Year 2020 due
to “limited visibility into future business trends in this unprecedented operating environment, which results in an unusually wide range of potential outcomes.”
www.lowes.com
More records for Ace Hardware – Ace Hardware too boasted signi cant second quarter gains. Biggest ever revenues were US$2.28 billion (+35%), US same store- sales were +35.3% and Acehardware. com revenues grew a massive 493%. On top of all this, Ace’s Q2 net income was US$138.9 million, +158% on the prior year.
Ace stores in the US “bene ted
from increased DIY activities by consumers sheltering in place, a shift in discretionary spending from travel and entertainment into home improvement, and consumers moving their purchases online and consolidating their store visits in order to limit potential COVID- 19 exposure.”
e second quarter of FY2020, according to Ace President & CEO, John Venhuizen, was “arguably the most di cult, unusual and yet perhaps rewarding quarter in Ace’s history.”
www.acehardware.com
34 NZHJ | SEPTEMBER 2020
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