ATLANTA – Home Depot’s second-quarter net income jumped 18 percent, helped by an improving housing market and good response to holiday events.
The nation’s biggest home improvement retailer’s results beat Wall Street expectations and the company raised its full-year earnings and revenue expectations.
A slowly improving employment landscape and extremely low interest rates this year have created such great demand that homebuilders are having some difficulty securing land and keeping pace. That’s good news for home-improvement retailers because as home values improve customers feel more comfortable investing money in projects for their home. Home Depot’s smaller rival Lowe’s Cos. will report results Wednesday.
For the three months ended Aug. 4, Home Depot Inc. earned $1.8 billion, or $1.24 per share. That compares with $1.53 billion, or $1.01 per share, a year ago.
Revenue for the Atlanta company climbed more than 9 percent to $22.52 billion, from $20.57 billion. The strongest categories include kitchens, indoor and outdoor garden, lumber, lighting, tools and other categories.
Analysts polled by FactSet expected earnings of $1.21 per share on revenue of $21.79 billion.
Revenue at stores open at least a year, a key indicator of a retailer’s health, increased 10.7 percent. In the U.S., the figure rose 11.4 percent.