Home Depot, Dayton Hudson Report Gains
Home Depot Inc., Dayton Hudson Corp. and other retailers reported strong profit gains for the third quarter as the economy boosted sales of everything from paint and other household goods to casual clothes.
Home Depot, the biggest U.S. retailer of home improvement supplies, said its net income increased 31% to $392 million, or 20 cents a share, a penny higher than expected. Revenue surged 24% to $7.7 billion as strong housing sales fueled demand for its home and building supplies. Sales at stores open at least a year (same-store sales) rose 7%.
Dayton Hudson’s profit jumped 22% to $183 million, or 39 cents a share, in line with estimates, on a 10% rise in revenue to $7.29 billion. Profit surged 18% at its Target discount stores, offsetting slow clothing sales at its department stores and Mervyn’s chain. Same-store sales gained 3.7%.
At a Glance
Other retailers’ earnings, excluding one-time gains and charges unless noted:
* AnnTaylor Stores Corp.’s profit climbed more than sixfold to $14.1 million, or 50 cents a share, far exceeding forecasts of 41 cents, from $2.2 million, or 9 cents, a year ago. The women’s apparel retailer said sales jumped 22% to $227.5 million and same-store sales surged 12.5% as it returned to neutral colors and classic styles.
* Cost Plus Inc. reported a profit of $782,000, or 9 cents a diluted share, contrasted with a loss of $1.3 million, or 15 cents, a year ago. Sales jumped 22% to $66.7 million and same-store sales were up 5.5%.
* Limited Inc.’s profit grew 21% to $39.4 million, or 17 cents a share, as expected. The specialty apparel retailer’s revenue rose 4% to $2 billion, and sales at stores open at least a year grew 5%.
* Longs Drug Stores Corp. posted a 10% increase in net income to $11 million, or 28 cents a diluted share, as sales rose 13% to $808 million. Same-store sales grew 7.8%, led by pharmacy revenue.
* J.C. Penney Co. bucked the trend among retailers, with a 19% drop in profit to $186 million, or 68 cents a share, a slightly better performance than the 67 cents analysts expected. The troubled company blamed unusually warm weather and Hurricane Georges for a slowdown in sales at its department stores. Revenue edged up 1.5% to $7.55 billion, with a boost from its Eckerd drugstores. Same-store sales fell 4% at its department stores and rose 10% at Eckerd.
* Saks Inc., formerly Proffitt’s Inc., said its profit increased 42% to $53.9 million, or 37 cents a share, matching estimates, as it cut costs after the purchase of the Saks Fifth Avenue luxury stores. Revenue rose 3.9% to $1.47 billion, adjusted for the purchase of Saks and other stores. Same-store sales were flat.
* Talbots Inc. posted a 14% increase in earnings to $12.7 million, or 40 cents a share, in line with estimates. The apparel retailer’s revenue grew 5% to $267.7 million and same-store sales rose 1.8%. Talbots said its return to career-oriented classic clothing boosted sales in October.
* Williams-Sonoma Inc. said its profit jumped 54% to $5 million, or 9 cents a diluted share, as sales grew 18.4% to $241.3 million and same-store sales rose 2.4%. The retailer of home and garden products said gross margins improved.
