Why Home Depot Should Laugh At Amazon

http://www.independent.co.uk/news/world/americas/why-home-depot-should-laugh-at-amazon-a7531506.html

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Can't order lumber and specialized bolts from Amazon (AMZN) and have it delivered to a job site, and that's one of many reasons to like Home Depot (HD) shares. 

Consumer confidence may have gotten a bump post-election, but so far, at least, that hasn't sent shoppers streaming back to the nation's department stores.

According to figures released by the Commerce Department on Friday, overall U.S. retail sales advanced 4.1% in December from a year earlier. But that was cold comfort to department store operators, who saw their combined top lines plunge 8.4%.

Behind that number is an industry reeling from layoffs and asset sales. Who's to blame? Amazon and its online kin are major culprits. According to the Commerce Department report, they're pinching customers at a rapid clip: Non-store retailers saw a 13.2% year-over-year sales surge in December.

But it's not all doom and gloom for the bricks-and-mortar crowd. Some areas, like home-improvement stores, are still posting steady gains: The sub-sector's sales rose 2.6% year-over-year last month.

The leader in the space, Home Depot (HD) , is taking on the online competition with gusto. Its third-quarter sales jumped 6.1% from a year ago, to $23.2 billion, while same-store sales gained 5.5%. Earnings per share (EPS) came in at $1.60, up from $1.35. Home Depot shares fell slightly in Friday trading.