Home Depot Sales Rise After Five Quarter Decline
Strong Q2 Earnings
Home Depot Inc. (NYSE: HD) reported a 0.6% increase in sales for the second quarter of 2023, snapping a five-quarter streak of declining sales. The home improvement retailer's net sales reached $43.8 billion, slightly above analysts' estimates of $43.7 billion.
Factors Driving Growth
The sales growth was primarily driven by increased demand for building materials, home appliances, and home furnishings. Home Depot attributed the rise in demand to the ongoing housing market recovery and continued investments in home renovations and upgrades.
The company also noted a positive impact from its omnichannel strategy, which combines in-store and online shopping experiences. Customers increasingly use Home Depot's website and mobile app for product research and purchases, which has contributed to overall sales growth.
Earnings Outlook
Despite the sales increase, Home Depot lowered its full-year earnings forecast. The company now expects annual earnings per share to be in the range of $16.40 to $16.60, below its previous guidance of $16.75 to $17.05. This adjustment reflects ongoing inflationary pressures and rising expenses.
Comments