Home Depot Beats Estimates But Struggles With Housing Market

Home Depot's second-quarter earnings report showed strong comparable sales growth and exceeded expectations on both top and bottom lines.

The company reported a 1.7% increase in same-store sales globally, its best performance in nearly four years, with US sales up 1.3%.

Total revenue rose to $47.86 billion, surpassing estimates of $47.23 billion, while gross margin improved to 33.7% from 33.4% a year ago.

However, the housing market remains a headwind for Home Depot, with customers delaying larger projects due to high interest rates and inflation.

The company reaffirmed its full-year guidance, calling for comp sales growth between flat and 2%, total revenue growth of 2.5%-4.5%, and adjusted earnings-per-share growth of flat to 4%.