Home Depot (NYSE:HD) has reported quarterly earnings and revenue that beat Wall Street expectations as consumers continue to spend on home improvement projects.
The home improvement retailer’s earnings per share came in at $3.92 compared to $3.40 that had been expected by analysts. Net sales rose 9.8% to $36.82 billion, topping expectations of $35.01 billion in quarterly revenue.
Home Depot said its same-store sales climbed 6.1% in the quarter, beating estimates of 2.2%. The retailer faced tough comparisons to a year ago, when its same-store sales were soaring, thanks to consumers taking on more do-it-yourself projects.
A strong housing market has helped Home Depot’s financial results remain strong. Consumers have been investing more as home prices climb, rising nearly 20% compared with a year ago.
Additionally, demand for materials has been rising from home professionals, helping to offset lower demand from do-it-yourself projects. Home Depot holds a large share of the professional market.
This quarter, Home Depot’s customer transactions fell by 5.5% to 428.2 million. But consumers were spending more when they did visit one of the retailer’s outlets, raising average spending by 12.9% to $82.38. Sales per square foot increased by 6.2% in the quarter, the company said.
