• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire

2

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure

3

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

1

The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire

2

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure

3

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
RetailHome Depot

Home Depot Says Trump Presidency Won’t Hurt Sales

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
November 15, 2016, 12:15 PM ET
Home Depot Earnings Up 14 Percent In First Quarter
MIAMI, FL - MAY 17: A Home Depot store is seen on May 17, 2016 in Miami, Florida. Home Depot raised its yearly outlook after first quarter sales figures showed the home improvement retailer had a net profit of $1.8 billion, or $1.44 share, compared with $1.58 billion, or $1.21 a share, a year ago. (Photo by Joe Raedle/Getty Images)Photograph by Joe Raedle—Getty Images

Home Depot executives maintained their bullish view that housing market trends would remain favorable and continue to boost sales at the home-improvement retailer. And the election of Republican President-elect Donald Trump did little to alter the sturdiness of the retail market for Home Depot.

During a conference call, Wall Street analysts asked executives a few times what a Trump presidency would mean for futures sales—both here in the U.S. and also in Mexico and Canada, where the retailer has store operations as well. Home Depot’s (HD) management team in general punted on those questions.

In a post-earnings interview, Fortune asked Chief Financial Officer Carol Tome about the election results. Her response? “Elections come and go and we are always focused on our customers and doing the right thing for our customers.”

Tome said that of course, Home Depot will take future economic data into consideration as they internally plan sales and ordering of goods—but the news of a Trump presidency didn’t seem to be an immediate factor in those changing models. And as it relates to interest rates—which forecasters are projecting will rise under Trump—Tome said that Home Depot doesn’t see any statistically significant correlation between rates and the retailer’s sales.

Tome instead touted other metrics that look favorable. Specifically, she pointed to the Joint Center for Housing Studies of Harvard University’s LIRA (Leading Indicator of Remodeling Activity), which suggests accelerated growth into the fourth quarter of this year and also throughout 2017. Meanwhile, interest rates have inched up but mortgage affordability today is actually more favorable than the mid-to-late 1990s. Even with a bigger increase, that affordability index wouldn’t top those historical figures.

Home Depot enters the final quarter of 2016 with another strong sales quarter in the book. Total sales increased 6.1% to $23.2 billion, while overall same-store sales increased 5.5%. By category, sales growth was strongest for appliances, with demand also strong for lumber, tools, gardening items, decor and flooring.

Chief Executive Craig Menear told analysts that Home Depot enjoyed balanced growth: all merchandising departments reported sales increases, while there was growth among both the professional customer and the casual do-it-yourself crowd. Online sales grew by over 17%. And looking ahead, Menear said the macro environment looks favorable: he said home price appreciation, housing turnover, household formation and an aging housing stock in the U.S. should continue to support sales growth.

Weather was also favorable in the third quarter, as a warm fall helped inspire customers to continue to work on outdoor projects. Meanwhile, Hurricane Matthew and the flooding in Louisiana resulted in a storm-related sales boost of about $100 million.

Home-improvement retail has been a bright spot in recent years, as department stores, affordable luxury brands, restaurants and others exposed to the discretionary spending habits of American shoppers face sales slumps or slowdowns. Because the housing market has been resilient and even improving, it gives consumers incentive to spend on their homes if they think they are an asset that is increasing in value.

The only small misstep that Home Depot likely made was that executives didn’t raise their sales targets for the year, news that sent shares a tad lower in Tuesday trading. But executives were bullish about their ability to build on last year’s impressive 8.9% same-store sales increase in the U.S., in particular touting some merchandising decisions that made earlier this year to bulk up on holiday goods.

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

t
RetailEconomics
The market keeps winning. Most Americans are losing faith
By Stan Choe and The Associated PressMay 23, 2026
3 days ago
James Daunt sits in a booksop, gesturing with both hands and smiling.
AIbooks
Barnes & Noble CEO clarifies the bookseller’s stance on AI-written books after refusing to ban them: ‘This is a straightforward rejection of AI books’
By Sasha RogelbergMay 22, 2026
4 days ago
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
EconomyRetail
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
By Marco Quiroz-GutierrezMay 22, 2026
4 days ago
trump
EnvironmentWhite House
Trump reverses grocery, air conditioning pollution regulations because they’re too woke
By Matthew Daly and The Associated PressMay 21, 2026
5 days ago
target
Retailearnings
Target posts biggest jump in comparable sales in 4 years as turnaround takes shape
By Anne D'Innocenzio and The Associated PressMay 20, 2026
6 days ago
Variational co-founders Edward Yu and Lucas Schuermann pose for a picture
CryptoCryptocurrency
Variational raises $50 million Series A to bring liquidity from traditional markets to blockchain rails
By Jack KubinecMay 20, 2026
6 days ago

Most Popular

The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire
Economy
The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire
By Nick LichtenbergMay 25, 2026
1 day ago
The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure
Travel & Leisure
The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure
By Catherina GioinoMay 25, 2026
21 hours ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
5 days ago
Elon Musk's best friend could make more than $100 billion from SpaceX's IPO. His firm is also owed billions by SpaceX
Investing
Elon Musk's best friend could make more than $100 billion from SpaceX's IPO. His firm is also owed billions by SpaceX
By Eva RoytburgMay 25, 2026
20 hours ago
A billionaire and an A-list actor found refuge in a 37-home Florida neighborhood with armed guards—proof that privacy is now the ultimate luxury
Real Estate
A billionaire and an A-list actor found refuge in a 37-home Florida neighborhood with armed guards—proof that privacy is now the ultimate luxury
By Marco Quiroz-GutierrezMay 25, 2026
21 hours ago
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
Lifestyle
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
By Sasha RogelbergMay 24, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.