There were two very important earnings reports Tuesday morning, as Walmart and Home Depot announced improving revenues and earnings. The two companies results give insight into the improving health of the United States economy, as consumers begin to spend more again.
Wal-Mart on Tuesday reported that revenues actually increased for the first time in nine quarters. Walmart attributes their positive trend to it’s renewed focus on lowest pricing and carrying the brands and products that their customers want the most. Walmart began pushing their lowest price guarantee just in time for the Christmas season and it appears to already be working.
Home Depot also announced earnings today, reporting a whopping 12% increase in net income on increased spending on home improvements by consumers, along with some help from Hurricane Irene rebuilding and repair projects. In addition, Home Depot, who is the number one home improvement chain in the world, raised it’s earnings guidance for the entire 2011 fiscal year, AND announced an increase in it’s dividend payout.
While Home Depot’s results may certainly signal a recovery in consumer confidence and spending, it’s also likely some of their improved results may have come from gaining market share from the number 2 Lowe’s Companies, which reported yesterday that income fell a whopping 44% on increased restructuring costs as it continues to close stores.
Complete Walmart earning report can be found here, while Home Depot earnings details can be found here.
Even with the good news, Walmart shares are trading down $1.59 or 2.7%. Home Depot is also down slightly, down $0.34 or .89%, as the overall markets are down today.