Home Depot still benefits from a seemingly never-ending housing boom

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Home Depot reported third-quarter profits on Tuesday that easily beat forecasts. Total revenue rose nearly 10% from a year ago to $36.8 billion and also surpassed Wall Street estimates.

Chairman and CEO Craig Menear said in the company’s earnings statement that results were solid thanks to “the increased demand for home improvement that continues”.

Revenue growth at stores that have been open for at least a year picked up in the third quarter. Home Depot said so-called same store sales increased 6.1% globally and 5.5% in the United States. That’s up from a global increase of 4.5% in the second quarter and a domestic increase of 3.4%.
Shares of Do-it-yourself shop (HD) gained 6% in late morning trading on the news. The stock is up nearly 50% so far this year and is trading at an all-time high.
Housing is the Energizer Bunny of the Economy: It Just Keeps Going
Top rival lowe’s (LOW), which will report earnings on Wednesday, also rose after Home Depot’s results. Shares of Lowe rose 4% on Tuesday and are up more than 50% this year.
Consumer spending continued to drive the economy despite ongoing concerns about Covid-19, inflation and global supply chain bottlenecks that have caused major shipping delays.
walmart (WMT) also reported healthy results on Tuesday. And retailers targeting consumers looking to make home improvements have done extremely well. Williams-Sonoma (WSM) reported strong results at the end of August and its shares have more than doubled this year.

Sources

1/ https://Google.com/

2/ https://www.cnn.com/2021/11/16/investing/home-depot-earnings/index.html

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