Home Sales Revenues Grew by 10% for DR Horton in Q2
Arlington, TX, April 7, 2020-D.R. Horton reported that home sales revenue for Q2 2020 increased 10% to $4.4 billion, compared to Q2 2019. Homes closed increased 8% to 14,539 homes and 10% in value to $4.4 billion, YOY.
Q2 2020 ended March 31.
Cancellations in Q2 were 4,570 homes compared to 3,896 homes in the prior year quarter, resulting in a cancellation rate of 19% in both periods.
For the first half of 2020, homes closed increased 10% to 27,498 homes and 11% in value to $8.2 billion, and net sales orders increased 19% to 33,213 homes and 22% in value to $10.0 billion.
In response to the pandemic, the company released the following statement, “The Company’s results of operations can be affected by changes in economic conditions that negatively impact the housing and financial services markets. Economic fundamentals remained solid in the housing market throughout most of the second quarter of fiscal 2020, as interest rates on mortgage loans remained low, demand was strong and there was a limited supply of homes at affordable prices across most of the Company’s markets. During the latter part of March and into April, the impacts of the COVID-19 pandemic (COVID-19) and the related widespread reductions in economic activity began to adversely affect the Company’s business operations and the demand for its homes. The Company has experienced increases in sales cancellations and decreases in sales orders in late March and early April, compared to the weeks leading up to the pandemic.
“There is uncertainty regarding the extent and timing of disruption that COVID-19 and related government directives, actions and economic relief efforts will have on the U.S. economy, capital markets, secondary mortgage markets, consumer confidence, demand for the Company’s homes and availability of mortgage loans to homebuyers. The extent to which this impacts the Company’s operational and financial performance will depend on future developments, including the duration and spread of COVID-19 and the impact on D.R. Horton’s customers, trade partners and employees, all of which are highly uncertain and cannot be predicted.”