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Shares of the Dow component rose more than 3% in premarket
trading after the company said its same-store sales jumped 23.4%
in the second quarter, surging past analysts' average estimate
of a 10.5% rise.
Home Depot and smaller rival Lowe's Cos Inc <LOW.N> have been
among a handful of corporate winners since the start of the
pandemic, as more people took up do-it-yourself projects such as
painting and gardening while at home.
The U.S. housing market's stronger performance compared with the
broader economy has also given people more impetus to remodel
their homes, driving demand for home improvement tools and
items.
"The massive shifts in spending that we are seeing will remain
fairly similar for the foreseeable future until we have a
reliable healthcare solution for COVID-19," RBC capital Markets
analyst Scott Ciccarelli wrote in a note to clients.
However, Ciccarelli warned investors that Home Depot's current
pace of sales growth would be difficult to top next year.
Net income rose 24.5% to $4.33 billion, or $4.02 per share, in
the quarter ended Aug. 2, despite the company spending $480
million in additional benefits to compensate employees required
to work in stores and warehouses amid the health crisis.
Analysts had expected a profit of $3.71 per share, according to
IBES data from Refinitiv.
Overall net sales rose 23.4% to a record $38.05 billion, beating
analysts' estimates of $34.53 billion.
Shares of Lowe's, which reports second-quarter results on
Wednesday, also rose nearly 3% before the bell.
Graphic: Interactive graphic on same-stores sales
https://graphics.reuters.com/
HOMEIMPROVEMENT-RESULTS/xegvbazrdpq/index.html
(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur
and Anil D'Silva)
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