Home Depot Sales Rise Despite US Housing Slump
Home Depot's quarterly sales improved in the second quarter as customers focused on smaller projects during the summer months, despite the US housing sector being mired in a slump.
The company reported revenue of $47.86 billion, exceeding the expected $47.24 billion, according to a survey by FactSet. Globally, sales at stores open at least a year climbed 1.7%, while in the US, comparable store sales rose 1.3%.
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 of GlobalData noted that the number of smaller projects increased by 1.5%, but pointed out a weakness: the number of bigger-ticket projects remained down, falling by 2.1% over last year.
The decline in larger projects is attributed to concerns around financing and a previous lack of moving activity, as well as higher borrowing costs due to mortgage rates being up from last year. Home Depot's ability to navigate current conditions remains unchanged, according to McPhail.