ATLANTA (AP) — Americans are plowing money into their homes at an astonishing rate, new, used and even those not yet built, creating for Home Depot a frenzy of loyal customers.
The world's biggest home improvement retailer rang up its highest quarterly sales, and richest earnings in the company's history, and it boosted its outlook for the year Tuesday.
“We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history,” said Craig Menear, chairman, CEO and president. “We also achieved the highest quarterly net earnings in company history. These results were made possible by our hard working associates and the outstanding values brought forth by our supplier partners.”
Revenue for the period ended July increased to $28.11 billion from $26.47 billion, topping the $27.84 billion that analysts polled by Zacks Investment Research forecast.
Sales at stores open at least a year, a key indicator of a retailers' health, increased 6.3 percent. In the U.S., the figure rose 6.6 percent.
In June, Americans signed more contracts to buy homes, snapping a three-month decline in pending sales. That same month, U.S. sales of new homes rose slightly, a sign that more would-be buyers are seeking newly built properties. In May U.S. home prices reached a new high for the sixth straight month.
Home Depot Inc. earned $2.67 billion, or $2.25 per share, in the quarter. A year ago the Atlanta-based company earned $2.44 billion, or $1.97 per share.
Analysts were calling for earnings of $2.21 per share, according to a Zacks survey.
Home Depot now foresees 2017 earnings per share will rise about 13 percent from the prior-year period and sales will climb approximately 5.3 percent. Its previous guidance was for earnings per share growth of about 11 percent and sales growth of approximately 4.6 percent.
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