Home Depot's strong results a sign of home improvement strength
Posted on Tuesday, August 18, 2015 at 8:04:42 AM
In another sign that people are taking on more remodeling projects - and likely seeking out home improvement financing to do so - the world's largest home improvement retailer's second quarter results beat out Wall Street expectations.
Home Depot saw sales at stores open at least a year rise 4.2 percent, with U.S. sales rising 5.7 percent in the second quarter, according to the Associated Press. The retailer itself, which caters both to contractors and do-it-yourself enthusiasts, can be a sort of gauge for how much people are investing in home improvement projects and in housing overall.
"We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market," Craig Menear, president, chairman and CEO of the retailer, explained in a statement.
Seth Basham, a Wedbush Securities analyst, noted that demand for indoor home improvement products was strong in the second quarter, Reuters reported. He explained that heavy rain in parts of the U.S. put a damper on demand for outdoor supplies such as gardening products and exterior paint in May and June.
Other measures of housing activity, such as the National Association of Home Builders/Wells Fargo builder sentiment index and the Commerce Department's measure of residential construction, also rose this year.