Home improvement retailers see strong Q3 sales
Posted on Thursday, November 19, 2015 at 9:25:47 AM
In the midst of a robust housing market recovery, home improvement retailers like Lowes and The Home Depot have reported soaring sales. According to Forbes, The Home Depot saw a net income of $1.7 billion in the third quarter. That is an impressive 17.4 percent increase from the same quarter in 2014. Meanwhile, Lowes announced that its revenue reached $14.4 billion, beating many economic forecasts to the tune of a more than 35 percent jump in earnings per share from last year.
The growth represented in the Home Depot and Lowes' third quarter earning reports is among the best in the retail sector. Their success is the direct result of consumers seeking home improvement financing for do-it-yourself projects. "The biggest driver of spending, for both DIY and pro-related, is home prices. Consumers invest in homes when they feel confident about the values of their homes," Seth Sigman, an analyst with Credit Suisse, told Forbes.
Demand for existing homes and current homeowners looking to renovate are two of the biggest drivers of the housing market. The Commerce Department issued a press release this week stating that while single-family housing starts fell 2.4 percent in October, building permits increased about 4 percent. With this new data, and factors like household formation and homebuilder confidence remaining high, it seems the housing market's resurgence isn't going away anytime soon.