Home Depot (HD) saw its first-quarter earnings rise 12.5%, but the results missed expectations after a long winter cut into the home-improvement retailer’s spring selling season.
Home Depot said Tuesday its profit was $1.38 billion, compared to $1.23 billion in the year-ago period. On a per-share basis, earnings climbed to $1 from 83 cents.
The latest quarter included a benefit of four cents a share related to the sale of a portion of the company’s stake in HD Supply Holdings. Excluding the share sale, Home Depot reported adjusted earnings of 96 cents a share.
Revenue improved 2.9% to $19.69 billion.
Analysts were looking for an adjusted profit of 99 cents a share and revenue of $19.95 billion.
Despite an uptick in the housing market, expectations for Home Depot’s first quarter remained tepid over concerns that do-it-yourself homeowners would put off projects until after the winter. Much of the U.S. saw record snowfall, and Home Depot said lingering cold temperatures hampered sales.
Rival Lowe’s (LOW) is scheduled to report earnings on Wednesday.
“The first quarter was impacted by a slow start to the spring selling season. But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided,” Frank Blake, Home Depot’s chairman and CEO, said in a statement.
Same-store sales were up 2.6% during the period, which ended May 4. U.S. stores logged comparable sales growth of 3.3% year-over-year.
The average customer ticket increased less than 1%, and the number of transactions jumped 2.2%. Gross margin widened to 35% from 34.9%.
Home Depot raised its earnings guidance for the full year to $4.42 a share, up from $4.38 to reflect the HD Supply share sale and other impacts. The Atlanta-based company also said it will buy back another $3.75 billion in stock by the end of the year.
Shares fell 0.8% to $75.86 in pre-market trading. Home Depot is down 7.1% so far this year.