Most people relate annual Holiday sales with jumpers and jackets. However DIY retailer Home Depot Inc. (NYSE:HD) is appearing as an analyst choice for holiday season sales due to bigger promotions and strong appliance sales in the recent quarter results.
Analysts have rated Home Depot very highly. There are few reasons mentioned such as retailer’s low earnings-per-share exposure in the fourth quarter and positive tailwinds.
“Home Depot’s recent quarterly results reported on Nov. 15 showed continued momentum in big ticket and Pro [Home Depot’s program for professional contractors], further market share gains and ongoing discipline,” said BTIG analysts in a note published Monday.
Credit Suisse analysts also mentioned that the appliance category perceived bigger discounts over the holiday weekend this year.
“Thanksgiving has become more important for this category in recent years, and this is notably one of the few promotional categories in the home improvement channel,” Credit Suisse wrote in a note published Monday.
In the recent times both Black Friday and the holiday shopping season have been very important for many retailers and brick-and-mortar stores across the US as more customers choose to shop online.
Meanwhile Analysts mentioned Home Depot and Lowe’s Companies Inc., as a major winners during the shopping madness, where there were more vigorous Black Friday sales year-over-year.
Lowe’s offered biggest Black Friday appliance deals while Sears Holdings Corp. was most hostilely discounting its Kenmore brand, Credit Suisse said.
In its results of fiscal third quarter, Home Depot mentioned appliances as a leading category, reporting a double-digit same-store sales surged for the quarter.
Analysts now are predicting the company to report a same-store sales rise in the fourth quarter of about 3%. Home Depot (NYSE:HD) itself also anticipate appliances to make a positive performance for the end of the year.