Home Depot Thrives on Repair Demand Amid Sluggish Housing Market
Home Depot reported stronger-than-expected second-quarter sales and profit on Tuesday, despite a subdued housing market. The retailer's sales rose 5.7% to $47.86 billion in the three months ended August 2, beating estimates of $47.27 billion.
The company attributed the growth to steady demand from customers for repair and maintenance work, such as painting and yard upkeep. Home Depot also benefited from the acquisition of SRS Distribution and GMS, which expanded its professional business targeting contractors and builders.
However, the housing market remains sluggish due to high interest rates and rising home prices, forcing customers to cut back on large home-improvement projects. To address this trend, Home Depot is rolling out its Express Delivery service nationwide, offering same-day or next-day delivery for a flat fee.