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• Home Depot sales rose 6.1%, compared to estimates of 1.4%
• Shares of the company rose a record high of 4% on Tuesday
Home Depot Inc on Tuesday topped quarterly sales estimates by almost $2 billion as consumers spend more on home improvement projects.
Shares of the company rose a record high of 4% on Tuesday.
As the halt in home improvement projects due to the COVID-19 crisis is coming to an end, builders and professionals are upgrading their toolkits and source building materials.
Rising house prices in the U.S. has also contributed in people’s interest towards investing in home upgrades.
Demand of home improvement products
Home Depot Chief Executive Officer Craig Menear said sales at the company’s stores were strong, despite fears of muted demand this year as people will be spending more time outside their homes.
"We had expected that, as the year progressed, you might see customers reverting back and spending in other areas. That may have affected us, but we really haven't seen that. Demand continues to remain strong," said Menear.
In the third quarter, company’s sales rose 6.1%, compared to estimates of 1.4% increase, according to Refinitiv data. Overall net sales rose nearly 10% to $36.82 billion, surpassing estimates of $35.01 billion.
Executives also said the company has received most of its products for the next quarter, eliminating concerns around holiday season shortages.
Picture Credits: Reuters