Home Depot Sees Boost from Smaller Projects Amid Slumping Housing Market

Home Depot's sales improved in its second quarter due to customers focusing on smaller projects during the summer months, despite the U.S. housing sector being in a slump.

The home improvement retailer saw revenue increase to $47.86 billion from $45.28 billion, beating Wall Street's expectations of $47.24 billion.

Comparable store sales rose 1.3% in the U.S., while globally they climbed 1.7%. Customer transactions slipped 1%, but the average amount spent per receipt increased to $92.50 from $90.01 a year earlier.

The company's solid performance was attributed to customers engaging in smaller projects, which saw a 1.5% increase over the prior year. However, Neil Saunders of GlobalData pointed out that bigger-ticket projects remain down by 2.1% due to concerns around financing and a lack of moving activity.

The U.S. housing market has been struggling since 2022, with existing home sales falling 1.7% in July and record prices proving an insurmountable hurdle for prospective buyers. Home Depot's outlook remains unchanged, with expectations of flat to up 2% comparable sales and a fiscal year 2026 growth guidance of between 2.5% and 4.5%.