Home Depot Sees Sales Bump from Smaller Projects Amid Housing Slump
Home Depot reported improved sales in its second quarter, driven by customers focusing on smaller projects amidst a sluggish U.S. housing sector. The home improvement retailer's revenue rose to $47.86 billion from $45.28 billion, beating the predicted $47.24 billion.
Globally, comparable store sales increased 1.7%, while in the U.S., they rose 1.3%. Customer transactions decreased by 1% but average receipts spiked to $92.50 from $90.01 a year ago.
Neil Saunders of GlobalData noted that smaller projects grew 1.5% over last year, 'a step change from previous declines.' However, bigger-ticket projects remain down, falling by 2.1%, as homeowners struggle with borrowing costs and a lack of moving activity.
Home Depot's CFO Richard McPhail attributed the demand to customers engaging in smaller projects. The company also announced express delivery nationwide, aiming to get orders within three hours or less for a small flat fee.