Home Depot reported better than expected fourth quarter earnings on Tuesday, bolstered by increased spending on home renovation, but warned that the strong dollar would negatively impacts its revenues this year.
The world’s largest home improvement store also announced it was increasing its dividend by 26% and said its board had authorized a $18 billion share buyback program.
Shares rose more than 3% in pre-market trading.
“We had a strong finish to the year, as strength across the store, the recovering U.S. housing market and solid execution aided our business in 2014,” said CEO Craig Menear.
Net income for the quarter rose 36% to $1.4 billion, or $1.05 per share, up from $1.0 billion, or 73 cents per share, a year ago. Excluding items, earnings were $1 per share.
Sales rose 8.3% to $19.2 billion.
Both figures handily beat Wall Street consensus estimates of 89 cents per share in earnings and $18.7 billion in revenue.
Same-store sales in the U.S. also rose by 8.9%, as consumers spent more on home repair and renovations.
