Home Depot Sales Boosted by Smaller Projects Amid Slowing US Housing Market
Home Depot's sales have seen an uptick in the second quarter due to customers focusing on smaller projects. The company reported revenue of $47.86 billion, beating Wall Street's expected $47.24 billion.
The U.S. housing sector is still experiencing a slump, but Home Depot saw growth across various business segments. Comparable store sales rose 1.3% in the United States and 1.7% globally.
Customer transactions decreased by 1%, but the average amount spent per transaction increased to $92.50 from $90.01 last year.
Neil Saunders, managing director of GlobalData, noted that spending on smaller projects has increased by 1.5%, which is a significant improvement over previous periods.
However, bigger-ticket projects have declined by 2.1% due to concerns around financing and the lack of moving activity in the housing market. Home equity loans are becoming more expensive for homeowners, making it harder to undertake larger projects.