Home Depot Sales Boosted by Smaller Projects Amid Housing Market Slump
Home Depot posted strong quarterly sales in its second quarter, driven by increased demand for smaller projects despite a sluggish US housing market. Revenue rose to $47.86 billion from $45.28 billion, surpassing Wall Street's expectations of $47.24 billion.
The company's comparable store sales climbed 1.7% globally and 1.3% in the US, with customer transactions dipping by 1%. However, average transaction value increased to $92.50 per receipt from $90.01 a year earlier.
Neil Saunders of GlobalData attributed the growth in smaller projects to customers' cautious approach due to higher borrowing costs and concerns around financing. He noted that bigger-ticket projects continued to decline by 2.1% over last year, largely due to mortgage rate increases.