Home Depot Sales Rise as Customers Shift to Smaller Projects
Home Depot reported improved sales in its second quarter, driven by customers focusing on smaller projects during the summer months. Revenue increased to $47.86 billion from $45.28 billion, surpassing Wall Street's expectation of $47.24 billion.
The company's comparable store sales rose 1.7% globally and 1.3% in the US. Chief Financial Officer Richard McPhail attributed this growth to broad-based demand across the business as customers continued to engage in smaller projects.
Despite these positive results, Neil Saunders of GlobalData pointed out that customer transactions slipped 1%, but the average spend per transaction increased to $92.50 from $90.01 a year earlier.
The US housing market continues to struggle, with existing home sales falling 1.7% in July and median prices reaching $434,100, up 2% from last year. Home Depot's earnings for the quarter were $4.77 billion, or $4.79 per share, exceeding expectations.
The company is launching express delivery nationwide, aiming to get orders within three hours or less for a small flat fee.