House Depot indicators sturdy begin to vacation season residence enchancment spending

The brand of House Depot is seen in Encinitas, California April 4, 2016. REUTERS/Mike Blake

Nov 16 (Reuters) – House Depot Inc (HD.N) beat quarterly gross sales estimates by practically $2 billion on Tuesday and signaled a robust begin to the vacation season as Individuals spend extra on instruments and supplies to finish massive residence enchancment initiatives.

Shares of the biggest U.S. residence enchancment chain rose 4%, hitting a document excessive.

Skilled contractors akin to builders and handymen have been dashing again to House Depot’s shops as they appear to improve their toolkits and supply constructing supplies to finish a backlog of residence enchancment and restore jobs that had been placed on maintain through the COVID-19 disaster.

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Rising home costs in america has additionally given folks confidence to spend money on residence upgrades, whereas extra millenials shifting to suburban areas through the pandemic has expanded the shopper base of shops like House Depot.

Regardless of fears that demand from do-it-yourself prospects would wane this yr as folks get again to spending extra time exterior their properties, House Depot Chief Govt Officer Craig Menear mentioned gross sales on the firm’s shops had been nonetheless holding sturdy.

“We had anticipated that, because the yr progressed, you may see prospects reverting again and spending in different areas. That will have affected us, however we actually have not seen that. Demand continues to stay sturdy,” Menear mentioned on an analyst name.

The corporate’s same-store gross sales rose 6.1% within the third quarter, beating estimates of a 1.4% improve, in keeping with Refinitiv IBES information. Total web gross sales rose practically 10% to $36.82 billion, above estimates of $35.01 billion.

House Depot mentioned same-store gross sales within the first two weeks of the fourth quarter had been trending greater than third-quarter numbers.

Executives additionally mentioned House Depot had acquired most of its fourth-quarter merchandise, easing issues of vacation season shortages. The corporate has been spending closely to get round international provide chain logjams, together with even chartering its personal cargo ships.

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Reporting by Uday Sampath in Bengaluru; Enhancing by Maju Samuel

Our Requirements: The Thomson Reuters Belief Rules.

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