The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Home Depot Inc reported sales growth that was more than double the already brisk rate analysts had been expecting, sending shares higher in early trading.
Same-store sales rose 23.4%, sharply beating the estimate for an 11.4% gain from Consensus Metrix. Revenue of $38.1 billion also surpassed expectations.
Home Depot Chief Executive Officer Craig Menear called
the sales performance “record-breaking.†The company’s statement itself is pretty bare bones on commentary, and analysts will be looking for more detail on this morning’s call.
Like many companies during the pandemic, Home Depot suspended its full-year forecast in May due to widespread uncertainty around Covid-19 and its impact on the broader economy. It did not reinstate it in the results.
Americans have been opening their wallets on home
improvement during the pandemic, recent data from the
US Census Bureau show. That’s reflected in Home Depot’s stronger-than-expected results.
Home Depot, long viewed as a proxy for the US housing market, likely also benefitted as mortgage rates are at a record low, driving demand for new homes and keeping the Atlanta-based retailer’s goods in high demand.