Page 34 - HW March 2021

global eyes
US hardware fares well, outlook uncertain
THE BIG PLAYERS in US home improvement revealed their fourth quarter (Q4) and year-end numbers in late February. All showed big gains but not all had a positive outlook.
Home Depot outlook “flat to slightly positive” – This despite a bumper second half to FY2020 with year-end sales +19.9%, US comps +20.6% and earnings +15%.
Q4 sales were +25% and US comparables +25%, with net earnings impacted by the US$110 million acquisition of HD Supply. Digital sales were +83% and 55% of online orders were fulfilled through a store.
For the full year (FY2020) sales were US$132.1 billion and net earnings US$11.2 billion.
“The team demonstrated ongoing flexibility to operate effectively in a very challenging environment and deliver record-breaking sales and earnings.
“Our ability to grow the business
by over $21 billion in fiscal 2020 is a testament to both the investments we have made in the business as well as our associates’ unwavering commitment
to our customers,” says Craig Menear, Chairman and CEO.
The Home Depot did not provide an outlook for FY2021, saying: “While we are not able to predict how consumer spending will evolve, if the demand environment during the back half of fiscal 2020 were to persist through fiscal 2021, it would imply flat to slightly positive comparable sales growth and operating margin of at least 14%.”
www.homedepot.com
Strong year end for Lowe’s – Lowe’s also had a strong fourth quarter with online sales +121%.
Lowe’s Q4 sales were US$20.3 billion (+26.9%), with US comparables +28.6% and net earnings of US$978 million (a staggering +92%)
For the full year (FY2020), sales were +24.2% and earnings +36.3%, the latter certainly indicative that Lowe’s is succeeding in turning itself around.
Interms of an outlook, Lowe’s is planning for three potential scenarios for 2021 “which assume modest mix- adjusted market contraction”.
www.lowes.com
Ace’s history,” says John Venhuizen, President and CEO.
“We’ve always believed that we
were blessed to be in the business of serving others. And now, after a year like 2020, we feel blessed to be an essential retailer with strong suppliers, an expansive supply chain and amazing people.
“Ace employees in our stores and our warehouses withstood the massive surge in demand as consumers channeled a disproportionate share of their discretionary spending into their homes and gardens.”
www.acehardware.com
Ace Hardware’s “extraordinary” year
– Ace is happy to ride what it’s calling an extraordinary DIY wave with record revenues, US same store sales +26%, online sales +272% for the year.
Ace’s Q4 sales were US$2.1 billion (+38.2%), with retail same store sales +28.7%, while for the full year (FY2020) sales were US$7.8 billion (+28%) and retail same-store-sales +25.9.
“The fourth quarter was yet again one of the most extraordinary in
32 NZHJ | MARCH 2021
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