Home Depot CFO Says They Were Surprised By Contractors

Home Depot Inc (NYSE: HD) this week reported strong results for the fourth quarter, beating all estimates and raising its quarterly dividend. Chairman, CEO and President Craig Menear commented, “We had a strong finish to the year, as strength across the store, the recovering U.S. housing market and solid execution aided our business in 2014.” However, he left one factor out of his explanation: the harsh winter.

The crude winter helped the world’s largest home improvements retailer during the holiday season, as people bought snowblowers, shovels, rock salt and other related winter items, like water heaters.

Another thesis points to the recuperation of the U.S. housing market, which may have incentivized do-it-yourself remodels, even in spite of the bad weather.

Vice President and CFO Carol Tome told Brian Sozzi on The Street that the management is thrilled with what they saw in the company's pro-related categories (double-digit same-store sales growth across most pro-related segments) and even confessed to being a bit surprised. “Oftentimes as the year winds down, special contractors go on holiday, and are not as busy as in prior periods,” she explained.

However, it was not only pros buying at Home Depot. “The sales strength extended to products usually bought by the average do-it-yourself consumer, too,” Sozzi wrote.

The strength is expected to continue throughout the spring.