Home Depot (HD, $327.38) reported higher second-quarter earnings and revenue that beat analysts’ expectations as the company cited continued strength in demand for home improvement projects.
Revenue for the three months ended July 31 rose 6.5% to $43.79 billion, which topped projections of $43.35 billion on Wall Street. Sales at stores open at least a year, a key indicator of a retailer's health, climbed 5.8%, and 5.4% in the U.S. While the number of customer transactions fell 3%, the amount shoppers spent per transaction rose 9.1%.
The home improvement retailer has topped quarterly earnings estimates since the first quarter of 2020, and hasn't missed revenue predictions since Q3 2019. The company's strategy leverages brick-and-mortar sales to help expand its e-commerce operations. In the first quarter, more than half of its online orders were fulfilled through a store.
Why it matters
Customers who bought homes during last year's housing boom are still driving demand for home-improvement chains even as the explosive growth seen during the peak of the pandemic has cooled. The spring and summer are also traditionally busy seasons as homeowners head out for flowers, vegetables and other gardening and landscaping goods.