Home Depot Sales Lifted by Smaller Projects Despite Ongoing Housing Market Slump
Home Depot reported improved quarterly sales in its second quarter, driven by customer focus on smaller projects during the summer months. The company's revenue increased to $47.86 billion from $45.28 billion, beating analyst expectations of $47.24 billion.
The U.S. housing market has been in a slump since 2022, when mortgage rates began climbing from historic lows. Despite this, Home Depot saw sales at stores open for more than a year rise by 1.7% globally and 1.3% in the U.S.
Chief Financial Officer Richard McPhail attributed the growth to 'broad-based demand across the business' as customers continued to engage in smaller projects. Neil Saunders, managing director of GlobalData, noted that while this may not seem impressive, it represents a step change from previous periods.
However, Home Depot's outlook remains unchanged, with guidance for 2.5% to 4.5% sales growth and flat to up 2% comparable sales in fiscal 2026.