Higher mortgage rates combined with steadily rising real estate prices have dampened home sales this summer despite the robust economy and job market, but Americans continue to plow money into the places where they live. "We feel very positive about the strength of the home improvement sector and the customers' willingness to spend". He did not cite the source of the data.
"Not only did our seasonal business rebound from the first quarter, but our overall results exceeded our expectations", Craig Menear, chairman and chief executive officer, said in a statement.
Second-quarter sales rebounded from the first quarter when cooler-than-usual weather in some parts of the United States hurt demand for spring season products. The tariffs on Canadian lumber and washing machines imported from China recently imposed by the Trump administration have been manageable, it said, increasing by the low single-digit percentages the cost of goods sold.
Home Depot now foresees 2018 earnings-per-share growth of about 29.2 percent, from last year's $9.42 per share.
Shares of the No. 1 USA home improvement chain, up 25 percent in the past 12 months, rose almost 1 percent to $196 in premarket trading. Revenue was $30.5 billion.
Home Depot handily beat expectations during the second quarter, bouncing back from a slow start to the year when awful weather cooled construction projects.
Sales at Home Depot stores open for more than a year climbed 8 percent, beating the average analyst estimate of a 6.65 percent rise, according to Thomson Reuters I/B/E/S.