Home Depot Sales Improve Amid Smaller Projects Focus

Home Depot's sales have seen an improvement during its second quarter, as customers focused on smaller projects due to the ongoing slump in the U.S. housing sector. The company reported revenue of $47.86 billion, exceeding the expected $47.24 billion from FactSet. Globally, sales at stores open at least a year increased 1.7%, with comparable store sales rising 1.3% in the U.S.

Chief Financial Officer Richard McPhail attributed the demand to customers engaging in smaller projects, saying 'We saw broad based demand across the business as customers continued to engage in smaller projects.' The average customer transaction slipped 1%, but spending per receipt rose to $92.50 from $90.01 a year earlier.

Neil Saunders of GlobalData noted that while healthy spending on smaller projects is encouraging, the number of bigger-ticket projects remains down by 2.1% over last year. This is due in part to concerns around financing and a previous lack of moving activity.

The U.S. housing market has been in a slump since 2022, with sales slowing again in July as record prices and higher mortgage rates prove difficult for buyers. Home prices continue to rise, hitting unprecedented levels in July with a median sales price of $434,100.