Home Depot Sales Lifted by Smaller Projects as Company Sticks to Outlook

Home Depot reported improved sales in its second quarter as customers focused on smaller projects during the summer months, but the company stuck to its previous outlook. Revenue increased to $47.86 billion from $45.28 billion, surpassing Wall Street's expected $47.24 billion.

The 1.7% global increase in sales at stores open at least a year was driven by a 1.3% rise in the U.S., as well as a 2.5% jump in Canada and 0.6% in Mexico, according to Chief Financial Officer Richard McPhail.

Customer transactions decreased 1%, but spending per transaction increased to $92.50 from $90.01 last year. Neil Saunders of GlobalData attributed the growth to a 1.5% increase in smaller projects and said it was 'a step change from the declines of previous periods.'

However, Saunders also pointed out that larger-ticket projects remain down by 2.1%, citing concerns around financing and a lack of moving activity.