BUILDING MOMENTUM

Home Depot is surpassing expectations as Americans prioritize abode over attire,

NEW YORK— The slow but steady housing recovery continues to lift Home Depot, pushing sales and profits above Wall Street expectations during the second quarter.

The world’s biggest home improvement retailer boosted its annual outlook for a second time this year, underscoring a transformation in the way Americans spend money.

Department stores, also reporting earnings this month, have largely been routed. The wandering eye of shoppers increasingly falls on the home, cars and electronics, rather than shoes, skirts and shirts. On the same day that Home Depot upped its guidance, Walmart reduced its expectations after missing second-quarter profit projections.

U.S. data shows that rising retail sales are being driven by spending on furniture, cars and things such as sporting goods. Home Depot’s customers are walking through its doors more often, and they’re spending more once they’re inside.

The average receipt during the quarter was $59.42, a 1.7-per-cent increase, and the number of transactions rose 2.6 per cent. Sales at stores open at least a year, a key indicator of a retailer’s health, rose 4.2 per cent. In the U.S., sales gained 5.7 per cent.

Home Depot’s second-quarter revenue increased to $24.83 billion from $23.81 billion. That’s better than the $24.66 billion analysts had expected, according to Zacks Investment Research.