Home Depot sales continued to rise in the third quarter as the US housing market became very hot.
Revenue rose 9.8% to $ 36.82 billion, according to Zacks Investment Research, beating Wall Street’s expectations of $ 34.97 billion. Sales in stores that have been open for at least a year, a key indicator of a retailer’s health, jumped 6.1%, also better than expected. In US stores, these sales rose 5.5%.
While the number of customer transactions fell 5.5%, the average check rose 12.9% to $ 82.38.
Some of these major shopping trips have included people preparing their homes for the winter season, but also higher prices due to disrupted supply chains and scarcity as the US economy emerges from the pandemic, according to Neil Saunders, managing director of GlobalData.
“Part of the growth can be attributed to inflation, which has driven prices up in many categories, resulting in a significant increase in sales,” Saunders said.
At the opening on Tuesday, shares jumped nearly 4%.
Home Depot earned $ 4.13 billion, or $ 3.92 per share, easily surpassing forecasts of $ 3.41 and last year’s quarterly profit of $ 3.4 billion.
Hardware stores were the focus of activity during the pandemic as people working from home took on new projects. Many also moved into new homes that had more home office space.
Sales of previously inhabited US homes in September returned to their highest pace since January as mortgage rates rise, prompting buyers to leave the scene.
The National Association of Realtors said last month that sales of existing homes were up 7% from August to a seasonally adjusted 6.29 million units per year.
In addition, new home sales jumped 14% in September, the fastest pace in six months, as strong demand helped offset rising prices.
The Commerce Department said last month that sales of new single-family homes rose to 800,000 units a year on a seasonally adjusted basis last month, well above economists’ expectations.