Home Depot Revenue Surges as Renovation Demand Holds Firm

Home Depot's second-quarter revenue exceeded expectations due to the 'locked-in homeowner trade,' where owners sit on 6.5% mortgages and renovate instead of selling their homes.

The company reported net sales of $47.86 billion, beating estimates, as homeowners opt for renovations over selling in a high-interest rate environment.

Comparable average ticket price rose 2.8% to $92.50, while comparable transactions declined 1.0%, indicating growth came from larger purchases rather than increased frequency.

The company's gross margin expanded to 33.7% from 33.4% in the same period last year, despite higher SG&A expenses related to the SRS Distribution integration and expansion into the professional contractor market.