![]() ![]() Net income for the quarter slid by 15 percent to P856 million, the company said. The increase is mainly attributable to expansion-related expenses, the company said. Get free shipping on qualified High Foot Traffic Exterior Wood Coatings products or Buy Online Pick Up in Store today in the Paint Department. Operating expenses including lease-related interest expense went up by 20 percent or P397 million year-on-year to P2.36 billion. Slowdown in foot traffic and transaction count in old stores drove companywide comparable sales or samestore sales to decline by 3.4 percent.Ĭomparable transaction count dropped by 7.4 percent while comparable ticket size still grew by 4.4 percent. Net sales for the second quarter alone rose 4 percent to P8.62 billion, mainly due to the contribution of below one-year stores. The depot format accounted for 97 percent of net sales, the home essentials format 2 percent and the remaining 1 percent by project sales. The company said four new stores were added during the period while two bottom-dwelling, smaller format branches were closed, ending the period with 85 stores. The increase was mainly driven by the contribution of new stores as comparable sales growth fell 0.2 percent for the first half. Net sales in the first half reached P17.15 billion, 7 percent higher from the previous year’s P15.94 billion. We still have seven ongoing construction projects, not including several that are in the planning or permitting stage, which are set to be opened next year.” We have opened four new stores so far and tomorrow we are opening another depot. From April to mid-August, while the coronavirus was precipitating the worst economic downturn since the Great Depression, Home Depot foot traffic was running at least 35 above last year’s level. We want to be ready and conveniently within reach by our customers when demand picks up. By all rights, a 32 plummet in second-quarter GDP should send building supply companies running for cover. “We are still pursuing our expansion plans at our current pace. ![]() She added that despite the softening of demand in the home improvement sector, Wilcon remains committed to pursuing its expansion plans. While our sales still grew modestly in the second quarter, this was not enough to cover the increases in our fixed costs, which comprises the bulk of our opex. “Historically, months with longer holiday stretches were periods with relatively lower sales since construction projects are usually also paused to save on labor cost or homeowners go on holiday themselves. “We have a high base since there was pent-up demand for the same period last year as we just came out of the Omicron surge plus there was a slowdown in private construction especially in April with its consecutive long weekends,” she said. Wilcon’s President and CEO Lorraine Belo-Cincochan said Thursday the company recorded slower growth in the second quarter. While the One Home Depot investments are paying off in some areas, Ken Leon, director of equity research at analytics firm CFRA, said the surprise was that “the demand was stronger from both the consumer and the pro, or the contractor, segment.Wilcon Depot Inc., the listed home improvement and finishing construction supplies retailer, said its income fell by 2 percent year-on-year to P1.81 billion in the first half due to lower foot traffic at its stores. “Now, it’s 9% to 10% of their business, which for a category that is not traditionally known for having a big online demand, that’s really pretty strong,” she said. She said things like in-store pickup help convert those online shoppers to in-store foot traffic. ‘You look at their online sales that grew 21% year, over year, which is really great growth and is helping to drive some of that total same-store sales growth,” said Liz Suzuki, a retail analyst at Bank of America. Home Depot has spent the last couple of years revamping stores, trying to streamline pick-ups for professional contractors and improving its business online. It’s a tough world out there for brick-and-mortar retailers. The company’s “One Home Depot” program - to better integrate its brick-and-mortar and online business - has strengthened sales, and the company’s performance was buoyed by a mild winter that facilitated construction. Home Depot today announced better than expected sales and profits in the fourth quarter - same store sales were up 5.3% in 2019. ![]()
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