* Q4 sales $22.21 bln vs est $21.81 bln
* Q4 adj profit $1.44/shr vs est $1.34/shr
* Expects 2017 same-store sales growth of 4.6 pct
* Shares rise as much as 2 pct to record high
(Adds details, background, CEO and analyst comment; updates
By Gayathree Ganesan
Feb 21 Home Depot Inc reported
higher-than-expected quarterly profit and sales, boosted by a
strong housing market in the United States, and set a $15
billion share repurchase program.
Shares of the company, which also forecast 2017 sales ahead
of Wall Street estimates, rose as much as 2 percent to a record
high of $145.65 in morning trading on Tuesday.
The company remains a bright spot in the retail sector as a
firming economy, higher wages and an increase in the value of
homes have spurred remodeling activity by homeowners.
"Home Depot is gaining share in a number of high value
categories, including appliances," GlobalData Retail analyst
Håkon Helgesen wrote in a note.
"Part of this is down to the poor performance of Sears,
which has traditionally been a destination for appliance
purchasers, but is now ceding share," he said.
Home Depot, the biggest U.S. home improvement retailer, said
transactions over $900, which represent about 20 percent of the
company's U.S. sales, were up 11.6 percent during the holiday
quarter, as customers spent more on flooring products and
In contrast, a focus on the do-it-yourself customer has been
curbing growth at closest rival Lowe's Cos Inc. The
company is scheduled to report its holiday-quarter results next
Atlanta, Georgia-based Home Depot said it expected 2017
sales to increase 4.6 percent, which translates to $98.95
billion. Analysts on average were expecting $98.45 billion,
according to Thomson Reuters I/B/E/S.
"Turning to 2017, overall GDP growth and strength in the
U.S. housing market should continue to support growth in our
business," Chief Executive Officer Craig Menear said on a
The company's same-store sales rose 5.8 percent during the
three months ended Jan. 29, beating analysts' average estimate
of a rise of 3.5 percent, according to research firm Consensus
Quarterly sales rose 5.8 percent to $22.21 billion, beating
the average analysts' estimate of $21.81 billion.
Excluding certain items, Home Depot earned $1.44 per share,
ahead of the Thomson Reuters I/B/E/S average estimate of $1.34.
The company said its new buyback program replaces a previous
authorization. About $4 billion is left under that plan, the
Home Depot's board increased the quarterly dividend to 89
cents per share, payable on March 23, from 69 cents per share.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by
Shounak Dasgupta and Sriraj Kalluvila)