Home Depot Sales Edge Up Amid Slumping Housing Market

Home Depot's sales improved in its second quarter as customers focused on smaller projects during the summer months. The U.S. housing sector remains in a slump, but revenue increased to $47.86 billion from $45.28 billion, beating Wall Street's expectation of $47.24 billion.

Globally, sales at stores open at least a year rose 1.7%, while in the U.S., comparable store sales climbed 1.3%. Customer transactions dipped 1% in the quarter, but the average spend per receipt increased to $92.50 from $90.01 a year earlier.

Neil Saunders of GlobalData noted that smaller projects saw a 1.5% increase over the prior year, which may seem unimpressive but represents a step change from previous periods. However, bigger-ticket projects remain down by 2.1%, impacted by financing concerns and a lack of moving activity.

Homeowners are struggling with higher borrowing costs, as the average long-term U.S. mortgage rate is still up from last year. Home Depot's Chief Financial Officer Richard McPhail remains optimistic about the company's ability to navigate current conditions, citing focus on what they can control.