Home Depot (NYSE:HD) on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations as the company cited continued strength in demand for home improvement projects.
“Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment,” Home Depot CEO Ted Decker said.
Earnings per share were revealed to be $5.05, compared to the expected $4.94, on revenue of $43.79 billion vs. the expected $43.36 billion.
Same store sales rose 5.8% in the quarter, topping analyst expectations for growth of 4.9%.
Total customer transactions in the period slipped to 467.4 million, from 481.7 million in the year-ago period, while average ticket grew 9% to $90.02 from $82.48. Professional contractors tend to make fewer visits and purchase in higher quantities.
Sales per retail square foot grew 5.7% compared to the same quarter last year.
During the pandemic, many people took on DIY projects to spruce up their living spaces as they spent more time hunkered down at home. Investors have been watching to see whether people are still prioritizing such projects in a tightening macroeconomic environment.
For the three-month period ended July 31, Home Depot said net income rose to $5.17 billion, up 7.6% from the prior year. Net sales grew 6.5% from a year ago, which the company said marked its highest-ever quarterly sales.
Home Depot said it still expects total sales for 2022 to grow about 3% from a year ago.
HD shares jumped $5.35, or 1.7%, to $319.96.
