Home Depot Sees Sales Lift from Smaller Projects Amid Slumping Housing Market

Home Depot reported improved sales during its second quarter, driven by customers focusing on smaller projects despite a slumping housing market. Revenue increased to $47.86 billion from $45.28 billion, beating Wall Street's expectations of $47.24 billion.

The company saw broad-based demand across the business, with customers engaging in more smaller projects. Chief Financial Officer Richard McPhail said that this trend is encouraging, as it represents a step change from previous periods.

However, Neil Saunders of GlobalData pointed out a potential weakness: the number of bigger-ticket projects undertaken remains down, falling by 2.1% over last year. This is due to concerns around financing and a lack of moving activity.