Home Depot Sales Boosted by Smaller Projects Amid Slumping Housing Market

Home Depot's quarterly sales have seen an improvement due to customers focusing on smaller projects during the summer months, despite the U.S. housing market still being in a slump.

The company's revenue increased to $47.86 billion from $45.28 billion, beating Wall Street expectations of $47.24 billion. Globally, sales at stores open at least a year climbed 1.7%, while comparable store sales rose 1.3% in the U.S.

Chief Financial Officer Richard McPhail stated that customers continued to engage in smaller projects, which is encouraging according to Neil Saunders of GlobalData.

However, Saunders also noted that bigger-ticket projects are down by 2.1%, due to concerns around financing and a lack of moving activity. Homeowners are finding it more expensive to take out loans using home equity, with rates now significantly higher than in the early 2020s.