Home Depot signals strong start to holiday season home improvement spending

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FILE PHOTO: The Home Depot logo is seen in Encinitas, California on April 4, 2016. Businesshala/Mike Blake
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(Businesshala) – Home Depot Inc on Tuesday beat quarterly sales estimates by nearly $2 billion and signaled a strong start to the holiday season as Americans spend more on equipment and materials to complete large home improvement projects. Huh.

Shares of the largest US home improvement chain rose 4%, hitting record highs.

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Professional contractors such as builders and handymen are returning to Home Depot stores as they seek to upgrade their toolkits and source building materials to complete the home improvement and repair jobs that have come to a halt during the COVID-19 crisis. Had gone.

Rising home prices in the United States have also given people confidence to invest in home upgrades, while more Millennials moving to suburban areas during the pandemic have expanded the customer base of retailers such as Home Depot.

Home Depot CEO Craig Menear said that despite fears that demand for its own customers will dwindle this year, Home Depot CEO Craig Menear said sales in the company’s stores are still strong.

“We expected that, as the year progressed, you might see customers returning and spending in other areas. Maybe that affected us, but we haven’t really seen that. Demand remains strong,” Menier said on an analyst call.

The company’s same-store sales grew 6.1% in the third quarter, according to data from Refinitiv IBES, which is projected to increase by 1.4%. Overall net sales increased nearly 10% to $36.82 billion, which exceeded estimates of $35.01 billion.

Home Depot said same-store sales in the first two weeks of the fourth quarter were running higher than the third quarter numbers.

Executives also said that Home Depot received most of its fourth-quarter products, easing concerns of a shortage during the holiday season. The company is spending heavily to achieve a global supply chain logjam, including leasing its own cargo ships.

Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel

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