Home Depot (NYSE: HD) reported another strong quarter Tuesday morning. It also announced a 10% increase in its quarterly dividend, but shares nonetheless headed lower, trading down by 5% as of 12:30 p.m. EST. In Home Depot's fiscal fourth quarter, which ended Feb. 2, overall sales increased 25.1% versus the prior-year period.
Lowe's Cos Inc on Wednesday backed its expectations for a sales decline in 2021, even after reporting a blow-out fourth quarter by riding on a sustained boom in demand from people sprucing up their homes during the COVID-19 pandemic. The home improvement chain and larger rival Home Depot Inc were among the biggest retail winners last year as Americans, who were forced to curtail their spending on travel and leisure activities, poured money into minor remodeling and repair works at their homes. Larger rival Home Depot reported a 24.5% gain on Tuesday.
The king of do-it-yourself retail reported its latest quarterly figures on Tuesday and investors reacted on earnings beat by trading down the stock. Home Depot (NYSE: HD) benefited as the pandemic and a strong real estate market bolstered home improvement sales. But the retailer did not provide an outlook due to the uncertainty revolving around the global health crisis and its implications for consumer spending Q4 earnings report The company generated $32.3 billion in sales, marking a 25% improvement over the year-ago quarter as consumers shopped early and spent more on holiday décor in an effort to gain some degree of normalcy. Comparable sales climbed by nearly the same percentage. As for the bottom line, net profit was 16% higher at $2.9 billion, or $2.65 per share. Both headline figures topped analyst estimates of $30.7 billion in sales and a per-share net profit of $2.61. The reported growth is in line with what Home Depot reported during the second and third quarter as it benefited from keeping doors open as an essential retailer. As for fiscal 2020, $240 million was devoted to Covid-related operational costs and as long as the pandemic lasts, Home Depot expects about $250 million of Covid-such operating expenses on an annual basis to cover personal protective equipment for employees, additional cleaning and paid leave for employees who get ill. Home Depot did not offer any guidance given the uncertainty related to the duration of the COVID-19 pandemic and its influence on the consumer. New trends Customers spent more when they visited the company's stores or its website with the value of a customer's average purchase rising nearly 11% compared to the previous year to $75.69. Sales per square foot jumped 24% to $528.01. Many customers purchased big-ticket items as transactions over $1,000 were up by about 23% on a YoY basis. Digital sales skyrocketed about 83% in the quarter compared to 2019's fourth quarter. As for the year, they grew about 86%, with about 60% of online orders fulfilled through the store. By adding online workshops, Home Depot expanded its audience and boosted the engagement of its existing consumers. Before the pandemic, it had an average of five in-store workshops per month which expanded to 40 online workshops per month that were live-streamed. Consumers About 45% of Home Depot's sales come from pros, such as plumbers, electricians and contractors which is a higher percentage than its rival Lowe's (NYSE: LOW) which gets up to 25% from that segment. Home Depot is looking to build on that advantage as it acquired HD Supply Holdings at the end of last year in a deal valued at $8 billion. As during previous quarters, the world's largest home improvement retailer continued to benefit from a DIY customer base that is effectively trapped at home much of the time and eager to make those homes as comfortable as possible or even add features to them. The big retailer became an obvious go-to place for materials, tools, and even furnishings during the pandemic. Outlook With the pandemic seemingly receding and consumers being able to return to travel and leisure activities, it's unlikely that the giant will post similarly impressive growth numbers with that pullback in spending. But Home Depot will continue to invest in integrating its e-commerce and brick-and-mortar business, with capital expenditures targeted at about 2% of sales in the undergoing year. By continuing to invest, the company hopes to attract new customers, especially millennials who are buying and fixing up their homes. This article is not a press release and is contributed by IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: email@example.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: firstname.lastname@example.org The post Home Depot's Robust Sales Trend Depends on the Pandemic appeared first on IAM Newswire. See more from BenzingaClick here for options trades from BenzingaPalantir Joins Forces With 3MCVS Feels Benefits And Drawbacks From The Pandemic© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Fed chair Jerome Powell was the latest to cosign higher U.S. growth expectations on Tuesday, agreeing that he could see the U.S. economy growing in the range of 6% in 2021 and reaching its pre-pandemic level by the first half of this year.Why it matters: Powell joins an expanding chorus of economists and investors who see the U.S. growing much faster than expected this year, reaching annual GDP growth not seen since the 1980s and about three times the average growth rate of the past 15 years.Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeState of play: Banks and asset managers are going even bigger with their predictions. Deutsche Bank chief U.S. economist Matthew Luzzetti revised his GDP projection up by 1.5 percentage points on Tuesday to 7.5%, based on fourth quarter comparisons.That's as high as Goldman Sachs' economists, who had previously been far more bullish than other major Wall Street banks.Luzzetti's projection is largely based on expectations for Congress to pass a fiscal stimulus bill closer to Biden's $1.9 trillion target than initially thought.Most economists had been expecting the stimulus to top out at around $1 trillion.More from Axios: Sign up to get the latest market trends with Axios Markets. Subscribe for free
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The consumer focus on home improvement and housewares continued strong into the fourth quarter of 2020, as today's earnings report by hardware chain Lowe's (NYSE: LOW) highlights. The company reported comparable sales, earnings, and revenue metrics that outdid Wall Street expectations, confirming the positive indicators seen over the past few weeks, including its recent initiative to hire 50,000 new workers. Comps also climbed 28.1% year over year, with a slightly higher increase of 28.6% in the home improvement category specifically.
- Internet Video Archive
INVINCIBLE is an adult animated superhero series that revolves around 17-year-old Mark Grayson (Steven Yeun), who’s just like every other guy his age — except his father is the most powerful superhero on the planet, Omni-Man (J.K. Simmons). But as Mark develops powers of his own, he discovers his father’s legacy may not be as heroic as it seems. From Robert Kirkman, the creator of The Walking Dead.
- Motley Fool
Home Depot, on the other hand, is the leading home-improvement retailer in the U.S., and our homes are going to require maintenance and repairs for as long as we live in them. The coronavirus pandemic is forcing Disney to operate its theme parks at reduced capacity. Regardless of the time until there is a return to normal, Disney's attractions should pick up right where they left off.
(Bloomberg) -- Heinz Hermann Thiele, a German investor and industrialist and one of the country’s richest men, has died. He was 79.Thiele died unexpectedly in Munich, according to a statement issued Tuesday by Knorr-Bremse AG, the brake-system manufacturer of which he was deputy chairman and majority shareholder. The company didn’t provide a cause of death or name his replacement.A native of Mainz, Thiele amassed a manufacturing empire that included a 59% stake in Knorr-Bremse and half of railroad-equipment maker Vossloh AG. His $20.2 billion fortune made him the fourth-richest person in Germany and the 97th-wealthiest in the world, according to the Bloomberg Billionaires Index.The tycoon had recently taken center stage as an activist investor in a drama gripping Deutsche Lufthansa AG. In June, he built a significant stake in the beleaguered airline and expressed dissatisfaction with the government’s rescue plan.It wasn’t immediately clear what Thiele’s death will mean for Lufthansa. His family hasn’t publicly commented on what it plans to do with his 12.4% stake in the carrier.A spokesperson for Lufthansa wasn’t immediately available for comment.Thiele’s investment in the airline led to a burst of activism in the run-up to its June 2020 AGM. He ultimately supported the bailout that led the German government to become its largest shareholder.His last public intervention came in November 2020, when he called on the government to broker pay-cut talks with the airline’s unions. The government didn’t join the discussions with labor representatives.Knorr-BremseThiele started at Knorr-Bremse in 1969 as a legal specialist in the patents department, and rose through the ranks before buying the company in 1985. At that point, he hadn’t even repaid the mortgage on his house, he said in an interview with the Frankfurter Allgemeine Zeitung newspaper.He and his family pocketed about 3 billion euros ($3.6 billion) from the initial public offering of Knorr-Bremse in 2018. Thiele said at the time he planned to hand over the company to his daughter and that estate planning factored into his decision to list it. More recently, he appeared to be building a war chest to fund private investments and last year sold about $2 billion of the brake-maker’s shares.He controlled his holdings in both firms through his family office, Stella, which hired Linde Group’s former head of pension investments, Christoph Schlegel, around the start of last year as its chief investment officer.(Updates with Lufthansa investment details from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Oil prices were mixed on Thursday with U.S. crude edging up to its highest close since 2019 as Texas refineries restarted production after last week's freeze, while Brent eased on worries that four months of gains will prompt producers to boost output. Earlier in the day, an assurance that U.S. interest rates will stay low and a sharp drop in U.S. crude output last week due to the winter storm in Texas, helped boost both U.S. crude and Brent to their highest intraday prices since January 2020. Brent futures for April delivery fell 16 cents, or 0.2%, to settle at $66.88 a barrel.
These players didn't live up to the big money they were paid.
Standard Chartered PLC on Thursday restored its dividend and reaffirmed its long-term profit goals, in a show of confidence about its ability to recover from the impact of the COVID-19 pandemic even as its annual profit more than halved. The Asia, Africa and Middle East-focused bank however warned that income in 2021 is likely to be close to last year, showing the challenge it faces to meet its modest profit goals in a world of rock-bottom interest rates. Boosting revenue has been Chief Executive Bill Winters' main headache in recent years, as slowing growth in many of the bank's key markets, a commodities downturn and low central bank rates all conspired to crush income.
Americans can’t file their income taxes fast enough — but they should brace for some unwelcome news in their 2020 returns
As of Feb. 19, only 8 full days into the 2021 filing season, the IRS received 34.69 million individual returns.
The U.S. House votes Friday on a bill to give you a third payment. Could there be another?
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Charlie Munger: It's 'absolute insanity' to think owning 100 stocks instead of five makes you a better investor
Munger says the argument for diversification should be called 'diworsification.'
Here's what still has to happen, including the big vote scheduled for Friday.
(Bloomberg) -- Shares of GameStop Corp. doubled yesterday and jumped another 19% today. Options traders think the stock can do much better than that.The most-active option traded on the stock Thursday was a contract betting that GameStop shares would spike to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%For other options traders, it was a question of when GameStop would hit the $800 mark, not if. The seventh and eighth most-active contracts were call options wagering that the stock would reach $800 by next Friday or in three weeks. It’s hard to say whether the contracts were mainly bought or sold, two traders said.“It’s speculation gone wild, pure and simple,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “It is Exhibit A in the nuttiness that is associated with GameStop.”GameStop’s Reddit-driven roller-coaster ride that roiled markets last month is continuing this week, with shares more than doubling in the final 90 minutes of trading on Wednesday and rising as much as 101% on an intraday level on Tuesday. The rally came as popular tech names from Tesla Inc. to Zoom Video Communications Inc. were battered after U.S. 10-year Treasury yields spiked to 1.6%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The world’s biggest Bitcoin fund is selling off faster than the cryptocurrency itself.The $32 billion Grayscale Bitcoin Trust (ticker GBTC) has plunged 20% this week, outpacing a 13% decline in the world’s largest cryptocurrency. GBTC’s once-massive premium to its underlying holdings has evaporated as a result, with the price of GBTC closing 0.7% below its underlying holdings on Wednesday -- the first discount since March 2017, according to data compiled by Bloomberg.The vanishing premium suggests that after billions poured into GBTC as investors sought exposure to Bitcoin’s dizzying rally, investors are looking for the exits as the climb stalls, according to Bloomberg Intelligence.“This is panic or profit-taking selling,” said Eric Balchunas, BI’s senior ETF analyst. “It’s almost like the price of GBTC is an amplified version of Bitcoin price.”Bitcoin surged to a record of over $58,000 last weekend, but has stumbled since. The cryptocurrency fell another 1.4% on Thursday, on pace for its worst weekly pullback in a year.Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of GBTC’s premium disappearing while speaking in a panel for the Bloomberg Crypto Summit on Thursday.“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.(Updates with comments from Michael Sonnenshein of Grayscale in the sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
- Simply Wall St.
In this article we are going to estimate the intrinsic value of Ozon Holdings PLC ( NASDAQ:OZON ) by taking the...
Ivanka Trump and Jared Kushner have filed their final financial disclosure forms (known as OGE 278e), covering their non-governmental income for 2020 and the first few weeks of 2021. Both give a...
What Happened: The largest crypto exchange in Southeast Asia, Philippines-based PDAX, experienced a technical failure that led to Bitcoin trading at $6,000 – an 88% discount to its current price. Following the incident, PDAX asked its customers to return their Bitcoins, threatening legal action, a local news outlet Bitpinas has reported. According to the exchange’s CEO, the system error was not due to a hack but a technical “glitch” caused by a massive surge in trading activity. Why It Matters: The initial outage is said to have taken place on February 18; however, since then, reports have surfaced on social media of customers being locked out of their exchange accounts and being asked to “return their Bitcoin.” “After almost 24 hours, they sent me a demand letter and SMS, requesting me to transfer back the BTC, or they “may” be compelled to take legal actions against me.” said one trader who believed his purchase was well within his rights without violating any laws or regulations of the trading platform. See also: How to Buy Bitcoin (BTC) Rafael Padilla, an attorney representing the affected users who are currently locked out of their accounts, commented on the issue on Facebook. “Our client’s trade transaction was legitimate under applicable laws, decided cases, and of course according to PDAX’s very own terms and conditions/user agreement.” According to Padilla, PDAX has opted to lock users out of their accounts because it cannot unilaterally reverse the transactions. An official statement from PDAX claims that 95% of accounts have been restored, but according to the report, many users are still locked out of their accounts. “It’s very understandable that a lot of users will feel upset they were able to buy what they thought an order was there for Bitcoin at very low prices. But unfortunately, the underlying Bitcoins were never in the possession of the exchange, so there’s never really anything there to be bought or sold, unfortunately.”, said PDAX CEO Nichel Gaba in a press conference earlier today. Image: vjkombajn via Pixabay See more from BenzingaClick here for options trades from BenzingaElon Musk's Tweet About Dogecoin Sends Price Up 10% In 30 Minutes AgainMicroStrategy Buys Additional .026B Worth Of Bitcoin, Surpasses Tesla's Bitcoin Holdings© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
- LA Times
Engine failures on commercial planes happen with some frequency. Modern jets are designed to fly safely for a while even after one engine quits.