Home Depot Inc (NYSE:HD, ETR:HDI) reported higher total sales than Wall Street expected and upped its guidance for the full year.
Third-quarter sales from the home improvement retailer came in at $40.2 billion, marking a 6.6% increase compared to the same period in 2023.
Comparable sales, however, dropped by 1.3% year-over-year. This reflects the positive impact of Home Depot’s latest acquisition.
Home Depot announced the acquisition of building materials supplier SRS Distribution in Match for $18.25 billion as a means of expanding its professional customer base.
SRS is expected to deliver $6.4 billion in full-year sales, which will push group-wide revenues 4% higher compared to 2023 provided targets are hit.
But excluding the impact of the SRS acquisition, Home Depot is expected to see a full-year sales decline of around 2.5%, which was not as bad as the 3-4% fall it had previously guided.
“While macroeconomic uncertainty remains, our third-quarter performance exceeded our expectations,” said chief executive Ted Decker.
“As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand.
“I would like to thank all of our associates for their dedication in serving our customers and communities.”
Home Depot shares are expected to add 1.5% when US trading commences on Tuesday.