LONDON (ShareCast) - (Sharecast News) - US retailer Home Depot posted quarterly sales that came in well ahead of expectations as Americans turned to home improvement projects while isolating inside their properties.

Quarterly revenues surged 23.4% to $38.05bn, a new record high and ahead of estimates of $34.53bn, while earnings per share came in at $4.02 each, also better than the $3.71 expected. Profits grew by 25% to $4.33bn.

Same-store sales soared 25% in the quarter, while average purchases rose 10.1% to $74.12.

Home Depot also said on Tuesday that customer transactions and sales per retail square foot both saw double-digit growth year-on-year.

However, while the Covid-19 pandemic helped the firm boost sales, costs have also risen due to the outbreak, with Home Depot spending $480.0m in the quarter to cover additional compensation for employees - including weekly bonuses for hourly workers.

Although Home Depot did not issue any guidance for the remainder of 2020, the firm said it would pay out a second-quarter dividend to shareholders.

As of 1345 BST, Home Depot shares were up 0.54% in pre-market trading at $289.80 each.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE