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Home Depot profit up despite breach

Tuesday, November 18, 2014 - 01:26

The home improvement chain's quarterly profit rose 14 percent. It warned cyberattack-related costs could hurt earnings in the current quarter. Fred Katayama reports.

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***PLEASE NOTE, THIS EDIT CONTAINS CONVERTED 4X3 MATERIAL*** The massive data breach apparently didn't scare shoppers from visiting Home Depot. Quarterly profit at the U.S.' largest home improvement chain shot up 14 percent as it sold more goods per customer. Its profit, sales, and comparable store sales all rose and beat forecasts. The chain found out in September that hackers had stolen information on 56 million payment cards over a six-month period. Home Depot said the data breach amounted to $34 billion in expenses in the latest quarter. It warned that future costs related to the cyberattack could materially hurt earnings in the current quarter. It was unable to provide an estimate of future liabilities. Home Depot's positive results come amid a sluggish housing recovery. Mortgage rates are low, but slow wage growth has kept the recovery from speeding up. Nevertheless, the chain said it saw strong performance across all regions, and it's sticking to its fiscal year forecast. J.P. Morgan analyst Christopher Horvers said, "With some slight momentum expected in September but reacceleration in October, we believe the breach is firmly behind Home Depot with momentum heading into the fourth quarter." Analysts said don't be surprised to see the stock sell off given its big rally ahead of the results. Home Depot shares slipped in early trading, chipping off some of its 17 percent gain over the last three months.

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Home Depot profit up despite breach

Tuesday, November 18, 2014 - 01:26