Metric sales

Home Depot’s key sales measure up 25% – press enterprise

Millions of people forced to work out of the office during the pandemic have taken on new home projects, and The Home Depot is providing much of the DIY materials they need.

At Home Depot stores open for at least a year, sales rose 25% in the United States in the second quarter, the Atlanta-based company reported on Tuesday.

Global revenue reached $ 38.05 billion, far exceeding the $ 34.94 billion expected by Wall Street, according to a survey by Zacks Investment Research. The company easily exceeded last year’s revenue of $ 30.84 billion for the quarter ended Aug. 2.

Sales at stores open at least a year, a key indicator of a retailer’s health, climbed 23.4% globally, behind only a sharp increase in same-store sales in the United States. industry analysts had expected.

People have taken on DIY projects at a breakneck pace after being forced out of the office and following a pandemic-induced lull, demand for new homes is increasing rapidly.

“We can’t really extrapolate current performance to future performance. What we do know is the home has never been more important to the customer, ”CEO Craig Menear said on the earnings call, CNBC reported. “We all spend a lot of time there, we see things that need to be done or things that you want to do. There is additional wear and tear and we can clearly see that the customer is engaging in a very strong way. “

Home Depot Inc. earned $ 4.33 billion, or $ 4.02 per share, in the quarter, which was also significantly higher than analysts’ projections per share of $ 3.70. A year earlier, he was making $ 3.48 billion, or $ 3.17 per share.

“The massive changes in spending we’re seeing will remain fairly similar for the foreseeable future until we have a reliable healthcare solution for COVID-19,” RBC Capital Markets analyst Scott Ciccarelli wrote in a note. to customers, Reuters reported.

However, Ciccarelli warned investors that Home Depot’s current rate of sales growth would be hard to beat next year.