Home Depot Sees Improvement in Smaller Projects Amid Slumping Housing Market

Home Depot reported improved sales during its second quarter as customers focused on smaller projects in the summer months. The home improvement retailer's revenue reached $47.86 billion, surpassing Wall Street's forecast of $47.24 billion.

The company saw a 1.7% increase in sales at stores open for at least a year globally and 1.3% in the US. Customer transactions declined by 1%, but average spending per receipt rose to $92.50 from $90.01 last year.

Neil Saunders, managing director of GlobalData, noted that smaller projects increased by 1.5% over the prior year, a step up from previous declines. However, bigger-ticket projects remain down due to concerns around financing and a lack of moving activity, falling by 2.1% over last year.

The US housing market has been in a slump since 2022, with mortgage rates contributing to higher borrowing costs. Existing home sales fell 1.7% in July, and record prices continue to hinder prospective buyers.