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Sales at stores open for more than a year rose 5.5 percent,
above the 3.9 percent growth expected by analysts polled by
research firm Consensus Metrix. Comparable sales at U.S. stores
rose 6 percent, Home Depot said on Tuesday.
Home Depot and smaller rival Lowe's Cos Inc <LOW.N> have
remained a bright spot in the retail sector as a firming economy
and higher wages are driving new home sales and an increase in
the value of existing houses has spurred remodeling activity by
homeowners.
Retail sales rose 0.4 percent last month after an upwardly
revised 0.1 percent gain in March, helped by hefty gains in
sales of building material, according to the U.S. Department of
Commerce.
This is in contrast to falling sales at department stores such
as Macy's Inc <M.N> and J.C. Penney Co Inc <JCP.N>, which are
suffering from lower spending on apparel and growing competition
from online and off-price retailers.
Home Depot's net income rose to $2.01 billion, or $1.67 per
hare, in the first quarter ended April 30, from $1.80 billion,
or $1.44 per share, a year earlier.
Net sales rose 5 percent to $23.89 billion.
Analysts on average had expected earnings of $1.62 per share on
revenue of $23.76 billion, according to Thomson Reuters I/B/E/S.
Home Depot's shares were up 1.7 percent at $160 in premarket
trading on Tuesday.
The company also raised its earnings forecast for the year
ending January 2018 to $7.15 per share from $7.13, citing
anticipated share repurchases.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Martina D'Couto)
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