After taking a back seat to do-it-yourselfers during much of the recent recession, professional renovators are back.
Home Depot reported Tuesday that its third-quarter profit was up almost 43 percent compared to the same period last year. It was lifted in part by home renovation work sparked by a surging housing market.
Professional workers spending more than $10,000 annually grew 53 percent in the quarter, said Carol Tome, Home Depot’s chief financial officer. That outpaced business from do-it-yourselfers, who were the backbone of business during the recession.
“It a sign that (professionals) are getting more work,” Tome said. “We exceeded our expectations this quarter.”
The Atlanta-based giant said business was up in all categories and in each region. Revenue improved 7.4 percent to $19.47 billion compared to $18.13 billion during the same quarter a year ago. Net earnings were about $1.35 billion or 95 cents a share in the third quarter of 2013 compared to $947 million or 63 cents in 2012.
Online business, a critical growth vehicle for the company, also improved during the quarter. While online sales make up only 3 percent of Home Depot revenue, business was up 50 percent.
That’s important for the company as it pitches in-store pickup to consumers who shop online but don’t want to wait for items to be shipped. To increase the speed of shipping for those who want that option, Home Depot also is opening a $65 million, 1 million-square-foot Fulfillment Center in Locust Grove early next year.
“Inventory really matters to the pro,” Tome said. “We want to improve our experience on the website.”
Home Depot also changed its 2013 guidance, expecting sales for the year to be up 5.6 percent.
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