Home Depot Sales Up 5.6% in Third Quarter

By Helen Gray On Nov 15, 2022

Home Depot’s revenue came in at $38.87 billion, topping analyst estimates of $37.95 billion.

Photo:

Sarah Silbiger/Bloomberg News

Home Depot Inc.’s

HD -2.55%

sales rose 5.6% in the third quarter as higher prices again offset a slowdown in transactions.

The home-improvement chain said Tuesday that customers spent an average of 8.8% more per transaction during the quarter while the number of transactions fell 4.3%.

This is the sixth consecutive quarter in which fewer but higher-dollar transactions have pushed Home Depot’s top line higher, following a surge in demand for home-improvement activity during the first year of the pandemic.

Revenue came in at $38.87 billion, topping analyst estimates of $37.95 billion, with comparable sales, which strip out store closures and openings, rising 4.3% from last year. Chief Executive

Ted Decker

cited strength in project-related categories as consumers continue to spend on sprucing up their homes.

Home Depot posted net earnings of $4.3 billion, or $4.24 a share, compared with $4.1 billion, or $3.92 a share a year earlier. Analysts polled by FactSet had been expecting $4.12 a share.

Shares slipped 2.5% to $299.06 in premarket trading.

Home Depot’s top rival,

Lowe

‘s Cos., is scheduled to report its quarter earnings on Wednesday.

Consumer spending has held up relatively well so far despite inflation, but experts say we’re approaching an inflection point. WSJ’s Sharon Terlep explains the role “elasticity” plays in a company’s decision on whether to raise prices. Photo illustration: Adele Morgan

Write to Dean Seal at [email protected]

Home Depot’s revenue came in at $38.87 billion, topping analyst estimates of $37.95 billion.

Photo:

Sarah Silbiger/Bloomberg News