Residence Depot alerts sturdy begin to vacation season dwelling enchancment spending

The emblem of Residence Depot is seen in Encinitas, California April 4, 2016. REUTERS/Mike Blake

Nov 16 (Reuters) – Residence Depot Inc (HD.N) beat quarterly gross sales estimates by practically $2 billion on Tuesday and signaled a robust begin to the vacation season as Individuals spend extra on instruments and supplies to finish giant dwelling enchancment tasks.

Shares of the most important U.S. dwelling enchancment chain rose 4%, hitting a document excessive.

Skilled contractors comparable to builders and handymen have been speeding again to Residence Depot’s shops as they give the impression of being to improve their toolkits and supply constructing supplies to finish a backlog of dwelling enchancment and restore jobs that have been placed on maintain in the course of the COVID-19 disaster.

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Rising home costs in the USA has additionally given individuals confidence to spend money on dwelling upgrades, whereas extra millenials transferring to suburban areas in the course of the pandemic has expanded the shopper base of outlets like Residence Depot.

Regardless of fears that demand from do-it-yourself clients would wane this yr as individuals get again to spending extra time exterior their houses, Residence Depot Chief Government Officer Craig Menear stated gross sales on the firm’s shops have been nonetheless holding sturdy.

“We had anticipated that, because the yr progressed, you may see clients reverting again and spending in different areas. Which will have affected us, however we actually have not seen that. Demand continues to stay sturdy,” Menear stated on an analyst name.

The corporate’s same-store gross sales rose 6.1% within the third quarter, beating estimates of a 1.4% enhance, in line with Refinitiv IBES knowledge. General web gross sales rose practically 10% to $36.82 billion, above estimates of $35.01 billion.

Residence Depot stated same-store gross sales within the first two weeks of the fourth quarter have been trending greater than third-quarter numbers.

Executives additionally stated Residence Depot had obtained most of its fourth-quarter merchandise, easing issues of vacation season shortages. The corporate has been spending closely to get round world provide chain logjams, together with even chartering its personal cargo ships.

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Reporting by Uday Sampath in Bengaluru; Enhancing by Maju Samuel

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