Biggest US home improvement chain also on Tuesday raised its full-year sales and profit forecasts
Home Depot tops earnings estimates
Home Depot's quarterly profit and comparable sales beat Wall Street estimates as homeowners continued to invest in their homes that are appreciating in value.
The biggest US home improvement chain also on Tuesday raised its full-year sales and profit forecasts.
Americans have been spending more on their homes as property prices are on the rise in a subdued US housing market, which is facing a supply crunch.
Home Depot had previously called out price appreciation as one of the primary motivators for people to invest in their homes.
The company on Tuesday said it now expects full-year sales to grow 5.3 per cent, comparable sales to rise 5.5 per cent and earnings of US$7.29 per share for the year ending January.
It had previously forecast sales to grow 4.6 per cent, comparable sales to rise 4.6 percent and earnings of $7.15 per share.
The number of customer transactions was up 2.7 per cent in the second quarter ended July 30, while the average ticket value rose 3.6 per cent to $63.05.
"We also believe an extended Spring season was positive for Home Depot's outdoor business in Q2, including outdoor garden," said the BTIG Research analyst Alan Rifkin.
Sales at stores open for more than a year rose 6.3 per cent, above the 4.9 per cent growth expected by analysts polled by research firm Consensus Metrix. Comparable sales at US stores increased 6.6 per cent.
Net income rose to $2.67 billion, or $2.25 per share, in the second quarter ended July 30, from $2.44bn, or $1.97 per share, a year earlier.
Net sales rose 6.2 per cent to $28.11bn, the highest quarterly sales in company history, Home Depot said.
Analysts on average had expected earnings of $2.22 per share on revenue of $27.84bn, according to Reuters.
Home Depot's shares were little changed in premaket trading on Tuesday. Up to Monday's close, the stock had risen 15 per cent this year.