Home Depot says customers bought ceiling fans, power tools and a 12-foot skeleton in Q3

Home Depot says customers bought ceiling fans, power tools and a 12-foot skeleton in Q3

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Home Depot says a 12-foot skeleton was a popular Halloween item this year. Home Depot

Home Depot Inc. HD, -0.96%, said its third quarter results benefited from continued consumer attention to the home during the coronavirus pandemic, with shoppers spending on everything from ceiling fans to tools electric through a giant skeleton for Halloween.

“[W]We continue to see unprecedented levels of engagement from new and existing customers across a variety of home improvement projects, ”said Edward Decker, COO of The Home Depot, during the call for help. Tuesday’s results, according to a FactSet transcript.

“We have seen clients working on a variety of projects in their homes with categories such as garage organization, ceiling fans, vanities, and power tools, all showing compositions well above the average. the company … evidenced by our 12 foot skeleton which sold out before October. “

The skeleton and other spooky decorations were part of the annual Halloween event.

See: Home Depot to acquire HD Supply Holdings in $ 8 billion deal

A late-October survey released by CIT Bank found that 39% of adults plan to celebrate Halloween at home with a horror movie, and 30% will decorate their homes and yards.

The average planned spending for the yard or home decorating was $ 39, according to CIT. The skeleton is currently listed online as out of stock at $ 74.75, down from the original price of $ 299.

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Analysts remain confident that the positive news from Home Depot will continue.

“Home Depot noted that trends have accelerated further so far in November,” wrote UBS analysts led by Michael Lasser. “While the early Black Friday promotions probably helped, it shows that the category remains well placed.”

UBS values ​​buying Home Depot shares with a price target of $ 315.

The Home Depot, like many retailers, has extended its Black Friday and other holiday promotions beyond a single day or event in order to minimize crowds and promote social distancing.

“Home Depot continues to exceed reasonable expectations just a few months ago, and we believe the company probably has a solid path to continue this trend at least in the next few quarters,” wrote analyst Raymond James, Matthew McClintock.

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“We believe the company’s strategic investments over the past several years position The Home Depot well to tackle the once-in-a-generation opportunities for market share consolidation.”

Raymond James believes Home Depot stock is outperforming with a price target of $ 305.

Wedbush analysts point to the risks ahead.

“A lengthened holiday season has helped the acceleration of the comps to kick-start 4Q, but we would be surprised by a sustained acceleration in the comps throughout the quarter,” said analysts led by Seth Basham.

“Nonetheless, we expect very strong competitors to persist, particularly as demand from professionals accelerates, although with some risk if more consumers decide that it is unsafe for professionals. be at home due to the increase in coronavirus cases. ”

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To go even further, analysts say that the comps of the second quarter of 2021 will “harden”.

Wedbush values ​​Home Depot shares neutral with a price target of $ 300

Home Depot stock has slipped 2.6% for the week so far despite a beat in earnings and sales, but shares are up 23.6% for the year to date. The Dow Jones Industrial Average DJIA Index, -1.15%, is up 3.2% for 2020 so far.