Home Depot Inc., the world's largest home-improvement chain, said third-quarter earnings climbed 22 percent as new products, including John Deere lawn tractors and Antigua ceiling fans, helped sales at older stores rise at the fastest pace since 1999.
Net income increased to $1.15 billion, or 50 cents a share, as sales in the quarter ended Nov. 2 rose 15 percent to $16.6 billion, the Atlanta-based company said in a statement. Sales of stores open at least a year rose 7.8 percent, a second straight increase after three quarterly declines.
The average sales ticket rose 4.9 percent to a record $52.10 as customers spent more on $199 fans, tractors, paint and power tools. Chief Executive Robert Nardelli is spending more on marketing including Home Depot's first holiday catalogue, adding exclusive goods such as Ridgid tools and investing $250 million to renovate stores with larger signs and softer colors.
Home Depot raised its annual earnings forecast to as much as 17 percent from 14 percent, while reiterating its sales forecast for as much as a 12 percent gain.
The company had been expected to report same-store sales increased 4.5 percent, with profit of 46 cents a share, according to analysts surveyed by Thomson Financial.
Shares of Atlanta-based Home Depot fell 72 cents to $35.47 yesterday in New York Stock Exchange composite trading. The stock has risen 48 percent this year, recouping most of the 53 percent decline registered in 2002.
Net income increased to $1.15 billion, or 50 cents a share, as sales in the quarter ended Nov. 2 rose 15 percent to $16.6 billion, the Atlanta-based company said in a statement. Sales of stores open at least a year rose 7.8 percent, a second straight increase after three quarterly declines.
The average sales ticket rose 4.9 percent to a record $52.10 as customers spent more on $199 fans, tractors, paint and power tools. Chief Executive Robert Nardelli is spending more on marketing including Home Depot's first holiday catalogue, adding exclusive goods such as Ridgid tools and investing $250 million to renovate stores with larger signs and softer colors.
Home Depot raised its annual earnings forecast to as much as 17 percent from 14 percent, while reiterating its sales forecast for as much as a 12 percent gain.
The company had been expected to report same-store sales increased 4.5 percent, with profit of 46 cents a share, according to analysts surveyed by Thomson Financial.
Shares of Atlanta-based Home Depot fell 72 cents to $35.47 yesterday in New York Stock Exchange composite trading. The stock has risen 48 percent this year, recouping most of the 53 percent decline registered in 2002.