Home Depot raises profit forecast by 9.3 percent
Home Depot reported a 9.3 percent rise in quarterly profit and boosted its full-year earnings forecast as customers spent more in a strong housing market, while benefiting from a strong U.S. housing market.
Shares of the world’s largest home improvement retailer were up 1 percent at $138.42 in early trading on Tuesday.
Chief Executive Home Depot Craig Menear said in a statement that housing continues to be a tailwind for our business. Low interest rates and a strengthening labor market are driving the housing sector. Home resales hit more than nine-year highs in May and June.
The company said there was increased demand for big-ticket items are priced above $900 such as heating, ventilation and cooling products and home appliances and roofing. Sales of such products rose 8.1 percent in the second quarter ended July 31, accounting for about 20 percent of total U.S. sales.
The company’s net income rose to $2.44 billion $1.97 per share in the second quarter ended July 31 from $2.23 billion, or $1.73 per share, a year earlier.
Net sales of the world’s biggest home improvement chain rose to $26.47 billion from $24.83 billion. The company said it now expected earnings of $6.31 per share for the year ending January, up from its previous forecast of $6.27.
Home Depot’s shares were slightly down in premarket trading. Up to Monday’s close of $137.06, its shares had risen 14.5 percent in the past year.
Source : Agencies