Home Depot Surges on Strong Q2 Earnings Despite Sluggish Housing Market
Home Depot posted stronger-than-expected second-quarter sales and profit, as resilient demand for repair-and-maintenance projects helped offset a sluggish US housing market. The world's largest home-improvement retailer saw its sales increase by 5.7% to $47.86 billion in the three months ended August 2, surpassing analysts' forecasts of $47.27 billion, according to data compiled by LSEG.
The company's shares rose about 1% in premarket trading following the release of its quarterly earnings report. Home Depot attributed the steady demand for repair-and-maintenance projects to stubbornly high interest rates, which have led homeowners to opt for smaller-scale tasks such as painting and yard work.
Despite a prolonged slump in the US housing market, Home Depot stuck to its annual sales and profit forecasts. The company expects tariff refunds to mitigate the impact of higher-than-expected fuel and other input costs during the year. On an adjusted basis, Home Depot reported quarterly earnings per share of $4.92, beating analysts' expectations of $4.73.