Smaller Projects Boost Home Depot Sales in Slumping Housing Market

Home Depot posted better-than-expected quarterly sales figures for its second quarter, driven by customers focusing on smaller home improvement projects during the summer months.

The retailer's revenue reached $47.86 billion, surpassing Wall Street expectations of $47.24 billion.

Comparable store sales in the US rose 1.3%, while globally they increased 1.7%.

Chief Financial Officer Richard McPhail attributed the growth to 'broad based demand across the business,' with customers engaging in smaller projects such as painting and decorating.

Neil Saunders, managing director of GlobalData, noted that the number of smaller projects undertaken during the quarter increased by 1.5% over the prior year, a 'step change from declines of previous periods.'

However, Saunders also pointed out that bigger-ticket projects remained down, falling by 2.1% over last year due to concerns around financing and lack of moving activity.

The US housing market has been in a slump since 2022, with mortgage rates rising from historic lows that fueled a homebuying frenzy at the start of this decade.