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Home Depot Raises Forecast on Surprise Gain in Comparable Sales

  • Analysts had expected same-store sales to drop as rates rise
  • Shares swing after retailer posts modest growth outlook
    

    

Photographer: Luke Sharrett/Bloomberg
Updated on

Home Depot Inc. jumped between losses and gains on Tuesday as investors balanced the big-box retailer’s rosier outlook with concerns about inflation and slowing growth in the second half. 

The home-improvement retailer boosted its annual outlook after an unexpected jump in first-quarter same-store sales showed that demand for home-improvement supplies is persisting, even as mortgage rates rise. Some of that increase, however, is due to inflation.