Home Depot Sales Surge, Extending Growth During Pandemic

Wall Street analysts had been forecasting sales of $34.82 billion and profit of $3.02 a share, according to a FactSet survey.

Chief Executive Craig Menear attributed the results to unprecedented demand for home-improvement projects. On a comparable-store basis, the company’s sales rose 31%, including a 30% climb in the U.S.

Even as much in-person retail evaporated last spring, Home Depot worked to keep its stores open, arguing that it should be considered an essential retailer. As homebound Americans shopped for basic supplies and took on household projects during the pandemic’s lockdowns, demand for products from house plants to cleaning chemicals and kitchen appliances soared.

A booming housing market and federal support in the form of enhanced unemployment benefits and stimulus checks have also bolstered home-minded consumer spending.

Despite a broader economic downturn, that trend has lifted the fortunes of Home Depot, a company whose focus on home projects had meant its growth was usually linked to baseline economic growth.The company’s share price has risen more than 33% over the last year, closing on Monday at $320.01. In pre-market trading, shares were up 2.5% Tuesday morning.

In the latest quarter, Home Depot’s tally of customer transactions rose to 447.2 million, from 374.8 million a year earlier. The average ticket rose to $82.37, from $74.70 in last year’s first quarter.

Write to Matt Grossman at [email protected]