The strong US housing market lifted second quarter sales and profits at the world’s largest DIY retailer, Home Depot.
Reported sales were up 6.6 per cent to $26.5bn (£20.5bn), while comparable stores sales rose 4.7 per cent in the three-month period, marginally below a Wall Street estimate of 4.8 per cent.
Home Depot operates 2,275 stores in all 50 US states, as well as in 10 Canadian provinces and Mexico. In US stores, sales rose 5.4 per cent.
The group reported net earnings of $2.4bn, up from $2.2bn in 2015. Net earnings per share came in at $1.97, in line with consensus estimates from Thomson Reuters.
Home Depot's shares were flat on the results announcement, up 0.05 per cent to $137.14 in US morning trading.
Why it's interesting
The company reiterated its full-year sales guidance of around 6.3 per cent and a lift in comparable sales of 4.9 per cent. It previously raised its sales guidance after a robust first quarter.
New-builds in the US rose unexpectedly last month, it was announced today, highlighting strength in the overall housing market.
What Home Depot said
Chairman, chief executive and president Craig Menear said:
We had a solid quarter, achieving the highest quarterly sales and net earnings results in company history as housing continues to be a tailwind for our business.
This was made possible by our hard working associates in their continued dedication to our customers.