Home Depot’s business “Pro” customers account for 40% of total sales, the retailer says.

The Home Depot Inc. built up its online sales in its first fiscal quarter by more than a fifth (21.5%) over the year-earlier quarter, as total sales grew at the relatively moderate rate of 9.0%, the home improvement retail chain says.

Craig Menear, chairman, CEO and president, said the company performed better than expected despite volatile weather that caused week-to-week demand spikes. “We were pleased with our stronger-than-expected start to the year,” he says.

The company didn’t break out online sales, but said online traffic also grew in double digits. Home Depot says its Pro customers ring up high average order values, accounting for 40% of sales, though only 3% of its customer base.

The company said it’s continuing to invest in improved fulfillment operations for online orders and expects to complete by the end of this year the rollout of a customer order management system across its U.S. stores. That system complements Home Depot’s implementation of its buy online, deliver from store system, which the retailer expects to make available in all stores by year-end. “In certain markets where BODFS has been introduced, the demand has been much stronger than we anticipated,” Ted Decker, executive vice president of merchandising, said on a conference call with stock analysts Tuesday, according to a transcript of the call provided by Seeking Alpha.

Menear added that, for the spring, “we are focused on further connecting our in-store and online experiences. We offered more expanded assortment of spring seasonal products online. We also leveraged our digital assets to more effectively target customers with a personalized message pertaining to relevant products and special buys. Additionally, we use digital media to highlight local in-store assortments to drive footsteps to our stores.”

Menear said Home Depot is still integrating the B2B business of distributor Interline Brands that it acquired last year, and expects Interline to be fully integrated within 24 months with Home Depot’s sales operations to serve its Pro customers. Interline includeso more than 10 specialized websites including SupplyWorks.com, a supplier of facility maintenance products; Sexauer.com, serving institutions; Wilmar.com and e-Musa.com, serving multi-family housing facilities; and e-Barnett.com and e-HardwareExpress.com, serving residential customers. Home Depot is integrating those sites into Home Depot’s main website, HomeDepot.com.

The company also reported for the first quarter ended May 1:

Net sales of $22.76 billion, up 9.0% from $20.89 billion a year earlier,
Comp store sales, or sales at stores open at least one year, increased 6.5% worldwide and 7.4% in the United States,
Gross profit of $7.79 billion, up 8.5% from $7.18 billion.
Operating income of $3.08 billion, up 18.5% from $2.60 billion.
Net earnings of $1.803 billion, up 14.2% from $1.579 billion.

Home Depot is No. 105 in the B2B E-Commerce 300 and No. 7 in the Internet Retailer Top 500 Guide.

(Source: b2becommerceworld.com  Author: PAUL DEMERY)