Home Depot Beats Expectations Amid Sluggish Housing Market

Home Depot's second-quarter sales and profit beat Wall Street estimates as strong demand for repair and maintenance products offset sluggish spending on big-ticket projects like kitchen renovations. The housing market remains subdued due to high interest rates, which have forced customers to cut back on large home-improvement projects.

The company saw a 5.7% increase in sales to $47.86 billion in the three months ended August 2, topping expectations of $47.27 billion. Comparable sales rose 1.3% in the U.S. and 1.7% overall, their best gain since the third quarter of 2022.

Home Depot's professional business segment, which accounts for about half of its annual sales, has been built out through acquisitions like SRS Distribution and GMS. The company is rolling out its Express Delivery service nationwide to both Pro and do-it-yourself customers for a flat fee.