Home Depot Inc, the world’s No.1 home improvement chain, reported a better-than-expected rise in quarterly same-store sales said it would buy back $18 billion of its shares.
Home Depot’s profit also beat market expectations as an improving job market encouraged Americans to spend more on renovations. The upbeat quarterly results came despite a winter slowdown in the housing market.
The company’s $18 billion share buyback replaces a $17 billion buyback authorized in 2013.
Home Depot’s same-store sales rose 7.9% in the fourth quarter ended Feb. 1, beating the average analyst estimate of 5.5%, according to research firm Consensus Metrix.
Comparable sales increased 8.9% in the United States, where Home Depot has more than 85% of its 2,269 stores.
U.S. homebuilders remain upbeat about market conditions, according to a survey by the National Association of Home Builders published last week.
Home Depot’s net income rose 36% to $1.38 billion, or $1.05 per share, in the quarter. Excluding items, the company earned $1.00 per share.
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Net sales rose 8.3% to $19.16 billion.
Analysts on average had expected earnings of 89 cents per share on revenue of $18.7 billion, according to Thomson Reuters I/B/E/S.
Home Depot also raised its quarterly dividend to 59 cents per share from 47.
The company said it expects full-year 2015 earnings of $5.11 to $5.17 per share, after accounting for share buybacks.
