Home Depot Sees Gains in Smaller Projects Amid Slowing Housing Market

Home Depot's quarterly sales improved in Q2 as customers focused on smaller projects during the summer months. The company reported revenue of $47.86 billion, beating Wall Street expectations of $47.24 billion.

The U.S. housing sector remains in a slump, with existing home sales falling 1.7% in July and mortgage rates still higher than last year. Homeowners are also struggling to afford bigger-ticket projects due to increased borrowing costs.

However, the number of smaller projects undertaken during Q2 increased by 1.5% over the prior year, according to GlobalData. Chief Financial Officer Richard McPhail noted that customers continued to engage in smaller projects, leading to broad-based demand across the business.