Home Depot rising
Home improvement retailer boosts forecast after record sales, profit
Encouraged by the strong job market and housing sector, Home Depot customers splurged in the second quarter, giving the home improvement retailer its highestever quarterly sales and earnings.
The retailer raised its sales forecast after the second-quarter performance outpaced expectations.
The quarter also suggests that Home Depot remains relatively insulated from online pressures despite brief concerns during the period when Amazon struck a deal to begin selling Sears Kenmore appliances.
Sales at Home Depot stores open at least a year rose 6.3% for the period ended July 30, topping S&P Global Market Intelligence analyst expectations of 5%.
The average customer spent 3.6% more at Home Depot compared to a year earlier, dishing out $65.03 per transaction. And the company benefited from a 2.8% increase in total customers.
Taken together, the results suggest strong consumer confidence.
For the full fiscal year, the company raised its projected same-store sales from a previous increase of 4.6% to a new outlook of 5.5%.
The company’s net earnings increased 9.5% to $2.67 billion, edging projections of $2.65 billion.
“We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history,” Home Depot CEO Craig Menear said in a statement.
Altogether, the company’s sales totaled $28.1 billion, up 6.2% and topping S&P projections of $27.8 billion.