DIY boom helps sales rally at Home Depot
By Abigail Townsend
Date: Tuesday 16 Nov 2021
(Sharecast News) - US retailer Home Depot has beaten quarterly forecasts as American homeowners rushed to do up properties.
The DIY specialist - the world's largest home improvement retailer, with 2,317 stores - reported third-quarter sales of $36.8bn. That was a 9.8% jump on the same period a year previously and ahead of Wall Street forecasts for total sales of around $35.01bn.
Like-for-like sales surged 6.1%, far exceeding a rise of around 2% expected by most analysts. Net earnings were $4.1bn or $3.92 per diluted share, compared to $3.4bn or $3.18 a year earlier.
The retailer is benefiting from a strong housing market in the US, which has encouraged households to invest in their homes as prices rise, both via professional help and through DIY.
Chief executive Craig Menear said: "As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility. Ultimately this is what has allowed us to respond to the elevated home improvement demand that has persisted."
The number of customer transactions fell by 5.5% to 428.2m, but consumers spent more when they did visit, with the average ticket rising 12.9% to $82.38.
As at 1330 GMT, Home Depot shares were up 1% in pre-market trading.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN