Home Depot, unlike Lowe’s, posts increased third-quarter profit

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Home Depot Inc., the world’s largest home-improvement chain, reported strong third-quarter earnings a day after its closest competitor, Lowe’s Companies Inc., showed plunging profits.

For the third quarter ending Oct. 30, Atlanta-based Home Depot said its net income jumped 12% to $934 million, or 60 cents a share, from $834 million, or 51 cents a share, a year earlier.

Earnings at North Carolina-based Lowe’s dropped 44.3% year-over-year to $225 million, with earnings per share down nearly 38% to 18 cents from 29 cents.

Home Depot’s 2,246 stores in North America, Mexico and China -- including dozens in Southern California -- saw a spike in customers willing to spend more money. The number of transactions increased 1.2% to more than 325 million, while the average price per purchase jumped 3% to $53.03.

Same-store sales at locations open more than a year were up 4.2%. Overall revenue spiked 4.4% to $17.3 billion as customers preparing for (and then cleaning up after) Hurricane Irene in August flocked to stores.

The retailer had operated a Disaster Response Command Center in Atlanta, which had emergency response teams ensuring that stores were kept well-stocked with storm supplies.

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-- Tiffany Hsu