|
Home
Depot and smaller rival Lowe's Cos Inc <LOW.N> have benefited as
consumers cut back spending on items such as apparel and
accessories and instead spend more on houses and renovating and
redecorating their homes.
"Housing continues to be a tailwind for our business," Home
Depot Chief Executive Craig Menear said in a statement.
Low interest rates and a strengthening labor market are driving
the housing sector. Home resales hit more than nine-year highs
in May and June. July data will be released next week.
Sales at Home Depot stores open more than a year rose 4.7
percent, matching the average analysts' estimate, according to
research firm Consensus Metrix. Comparable sales at U.S. stores
rose 5.4 percent.
The company's net income rose to $2.44 billion, or $1.97 per
share, in the second quarter ended July 31 from $2.23 billion,
or $1.73 per share, a year earlier.
Net sales of the world's biggest home improvement chain rose to
$26.47 billion from $24.83 billion.
Analysts on average had expected earnings of $1.97 per share on
revenue of $26.49 billion, according to Thomson Reuters I/B/E/S.
The company said it now expected earnings of $6.31 per share for
the year ending January, up from its previous forecast of $6.27.
Home Depot's shares were slightly down in premarket trading. Up
to Monday's close of $137.06, its shares had risen 14.5 percent
in the past year.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Anil
D'Silva)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
