WASHINGTON, D.C. – New earnings data released by Home Depot and Lowe’s reveals that they saw their net incomes soar higher into the billions, all after both companies increased prices on consumers. After its average ticket price rose by 11.2% year-over-year, Home Depot saw its net earnings increase to over $4.2 billion and its net sales soared by $1.4 billion.
During an earnings call yesterday, Lowe’s CEO Marvin Ellison bragged about the positive impacts of the company’s “improved pricing capabilities.” The company’s increase in net earnings and first quarter operating margins — by 65 basis points — helped it spend a staggering $4.1 billion on stock buybacks and $537 million on cash dividends.
Home Depot and Lowe’s are the latest to join the long list of corporations exploiting the pandemic to ruthlessly upcharge working families struggling to make ends meet. How can Home Depot justify hiking prices on its customers as its net earnings jump to a staggering $4.2 billion?Companies making hand over fist during the economic recovery have a choice, and major retailers continue to choose padding their bottom lines rather than keeping prices stable for everyday families.”
Kyle Herrig, President of Accountable.US
Last month, government watchdog Accountable.US released an analysis of earnings data of the ten largest U.S. retailers by market capitalization — including Home Depot and Lowe’s — finding that they all raised consumer prices while collectively reporting $24.6 billion in increased profits during their most recent fiscal years. These same companies also ramped up spending on shareholder handouts by nearly $45 billion year-over-year for a total of $79.1 billion.
SEE MORE PROFITEERING FROM MAJOR RETAILERS THIS WEEK:
- On Wednesday, TJX Companies’ CEO admitted his company has managed to escape “pushback in any area” regarding pricing, so it’s no surprise the company reported a 10% increase in net income this past quarter thanks to their “pricing initiatives.” This profit helped fund $600 million in stock buybacks and $307 million in shareholder dividends.
- In Q1 2022, Target spent $424 million on dividends compared to $340 million in 2021 —a 32.4% increase per share. Even as consumers continue to face inflated prices on household staples, the company isn’t planning on slowing their shareholder spending – Target announced an “accelerated share repurchase” plan to buy back up to $2.75 billion worth of stock.