Home Depot Tops Estimates as Homeowners Focus on Small Projects
Home Depot, the world's largest home-improvement retailer, exceeded Wall Street expectations in its second-quarter sales and profit. The company reported a 5.7% increase in sales to $47.86 billion for the three months ended August 2. Analysts had predicted $47.27 billion.
The surge in sales was driven by resilient demand for smaller repair-and-maintenance projects, such as painting and yard work, which helped offset a sluggish U.S. housing market. Homeowners are turning to these types of projects due to high interest rates and concerns over affordability. Home Depot offers products across a broad price spectrum, from $5 to upwards of $5,000, with an average basket size of about $90.
The company stuck to its annual sales and profit forecasts, despite the impact of higher-than-expected fuel and other input costs during the year. Home Depot expects tariff refunds to counter this effect. On an adjusted basis, the company reported quarterly earnings per share of $4.92, exceeding analysts' expectations of $4.73.
Home Depot's CEO, Ted Decker, is taking a temporary medical leave of absence, with Chief Financial Officer Richard McPhail and Senior Executive Vice President Ann-Marie Campbell overseeing his duties.