Home Depot Inc., the Atlanta-based home-improvement retailer, reported quarterly sales that surpassed analysts’ expectations as consumers keep shifting spending to household renovation projects.
Same-store sales, a key gauge of performance for retailers, rose 24 per cent in the quarter ended Nov. 1. That’s more than the 17.4 per cent estimate from Consensus Metrix. The company also said it will spend US$1 billion to boost annual compensation for front-line employees who work on an hourly basis.
Home Depot has broadly benefited amid the pandemic of 2020 as consumers divert spending that would have gone to travel and entertainment to improving their homes. With construction booming, it announced on Monday it would buy building products distributor HD Supply Holdings Inc., reuniting the two companies after they split apart more than a decade ago. Investors will listen for additional details in the company’s upcoming call with analysts on Tuesday morning.
Home Depot shares fell 1.2 per cent in pre-market trading Tuesday. The retailer’s shares have risen 28 per cent this year through Monday’s close, outpacing the S&P 500 Index.
In order to prevent crowds from accumulating during the pandemic, the home-improvement retailer started offering its Black Friday sales earlier this year and has pushed them online as well.
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