Updated at 6:25 am EST
Home Depot (HD) posted better-than-expected second quarter earnings Tuesday, while reiterating its full-year profit forecast, as the retailer saw an unexpected surge in home improvement demand amid a slowing housing market.
Home Depot said earnings for the three months ending in July, the company’s fiscal second quarter, were pegged at $5.05per share, up 11.5% from the same period last year and firmly ahead of the Street consensus forecast of $4.94 per share. Group revenues, Home Depot said, rose 6% to $43.8 billion, firmly topping analysts’ estimates of a $41.12 billion tally.
Same store sales were up 5.8% from last year, Home Depot said, soundly beating the Refinitiv forecast of 2.8%, while comparable sales in the U.S. were up 5.4%, a figure that also topped Street forecasts. Average tickets rose 9.1% per trip, compared to a 11.4% growth rate in the first three months of the year, to just over $90.
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Looking into the 2022 fiscal year, which ends next January, Home Depot reiterated that it sees ‘mid single digit’ earnings growth, up from its prior forecast of ‘low single digit’ gains, and comparable sales growth of around 3% and operating margins of around 15.4%
“In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said CEO Ted Decker. “Our performance reflects 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,” he added. “I would like to thank them and our many partners for their hard work and dedication to our customers.”
Home Depot shares were marked 2.4% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $307.05 each.