Home Depot Beats Expectations Despite Housing Market Slump

Home Depot reported improved sales during its second quarter, beating market expectations. Revenue rose to $47.86 billion from $45.28 billion in the same period last year, with comparable store sales increasing 1.7% globally and 1.3% in the U.S.

Chief Financial Officer Richard McPhail attributed the growth to customers engaging in smaller projects during the summer months. Neil Saunders of GlobalData noted that while smaller project numbers increased by 1.5%, bigger-ticket project numbers fell by 2.1% due to concerns around financing and a lack of moving activity.

Home prices continue to rise, reaching unprecedented levels in July. The U.S. median sales price increased 2% from last year to $434,100. Home Depot's earnings for the three months ended August 2 were $4.77 billion, or $4.79 per share, surpassing Wall Street predictions of $4.73 per share.

The company is launching express delivery nationwide, which will get orders to customers within three hours or less for a small flat fee.