US home improvement giant Home Depot Inc (NYSE:HD) reported its highest ever quarterly revenue, smashing Wall Street forecasts in the process.
Against a difficult backdrop for US retailers, Home Depot generated revenues of US$28.1bn in the three months ended June 30, comfortably above the US$27.8bn analysts had expected.
Having more success than apparel retailers
Net income also grew to US$2.7bn, US$2.25 per share, ahead of forecasts and the US$1.97 it posted for the same period of last year.
Same store sales in the US increased 6.6% year-on-year, while sales at stores open for more than year rose by 6.3%.
Home Depot said lumber, flooring and electric grills were some of the highest-selling products in the quarter, while sales of appliances also picked up.
Sales of big ticket items – those over US$900 – jumped by more than 12% in the latest which gave another boost to the results.
“We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history,” said chief executive Craig Menear.
Upgraded full year outlook
The strong numbers come at a time when the US housing market is starting to pick up again, which is always good news for DIY retailers. Sales of new homes are rising every month, as do the prices they’re selling for.
Given the outperformance in the second quarter, Home Depot has raised its full-year guidance for the second time in 2017.
It now expects sales to climb by around 5.3% this year and for comparable sales to climb by 5.5%.
The retailer has also raised its earnings outlook for 2017, and now expects growth of about 13% to US$7.29 a share. Previous estimates had called for earnings per share of US$7.15.
Shares have been rallying in the run-up to the results, with investors seemingly taking some profits in early deals on Tuesday.
Shares lost 2.27% to US$149.97.