Home Depot Sales Lifted by Smaller Projects Amid Struggling Housing Sector

Home Depot reported improved sales in its second quarter as customers focused on smaller projects during the summer months, despite the struggling U.S. housing sector.

The company's revenue increased to $47.86 billion from $45.28 billion, beating Wall Street's expectations of $47.24 billion.

According to Neil Saunders, managing director of GlobalData, 'healthy spending on smaller projects during the quarter is encouraging.' He noted that the number of smaller projects undertaken during the quarter increased by 1.5% over the prior year, a step change from previous periods.

However, Saunders also pointed out a potential weakness in the bigger-ticket segment, where credit is sometimes required. The number of bigger-ticket projects undertaken remains down, falling by 2.1% over last year, due to concerns around financing and a previous lack of moving activity.