Home Depot quarterly sales soar 23% as consumers take on more DIY projects in pandemic

Home Depot on Tuesday reported that its quarterly sales soared 23% as consumers stuck in the house during the coronavirus pandemic tackled home improvement projects.

Shares of the company rose 2.6% in premarket trading.

Here’s what the company reported for the fiscal second quarter compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• EPS: $4.02 vs. $3.71 expected
• Revenue: $38.05 billion vs. $34.53 billion expected

Home Depot’s profit also surged 25% to $4.33 billion, or $4.02 per share, during the fiscal second quarter ended Aug. 2, up from $3.48 billion, or $3.17 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.71.

Net sales rose 23.4% to $38.05 billion, topping expectations of $34.53 billion. Its U.S. same-store sales soared 25% in the quarter as consumers visited the retailer more and spent more money. Average ticket rose 10.1% compared to the same time last year.

While the pandemic is boosting sales for Home Depot, it’s also raising costs. The company spent $480 million during the quarter on additional compensation for its employees, including weekly bonuses for hourly workers, down from $640 million in the previous quarter. 

The company did not provide a new forecast for the remainder of fiscal 2020. Home Depot suspended its forecast in May, citing the uncertainty related to the coronavirus pandemic and its impact on the economy.

Unlike many cash-strapped companies, Home Depot will pay out a dividend to shareholders for the second quarter.

This story is developing. Please check back for updates.