Home Depot Sales Brighten Amid Slowing Housing Market

Home Depot reported improved sales in its second quarter, but the outlook for the housing market remains uncertain. The home improvement retailer saw revenue increase to $47.86 billion from $45.28 billion, surpassing Wall Street expectations of $47.24 billion.

The company's Chief Financial Officer Richard McPhail attributed the growth to customers focusing on smaller projects during the summer months. Globally, sales at stores open at least a year rose 1.7%, while in the U.S., comparable store sales increased by 1.3%.

Despite the positive performance, Neil Saunders of GlobalData noted that bigger-ticket projects remain down due to concerns around financing and a lack of moving activity. Homeowners are also facing higher borrowing costs, making larger home improvement projects more daunting.