Home Depot Sales Surge on Renovation Boom Even as Costs Rise
- Third-quarter comp sales so far matching second-quarter rate
- Company is spending ‘more than anticipated,’ analyst notes
This article is for subscribers only.
Home Depot Inc. reported sales growth that was more than double the already brisk rate analysts had been expecting, but rising expenses meant flat margins in an otherwise standout quarter.
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. The gain was driven by both higher average customer checks and more transactions, meaning more shoppers bought from Home Depot in the quarter and they spent more every time they came in. Comparable sales in August are at similar levels to the past quarter, executives said on a call with analysts.