Atalanta’s Home Depot hints strong start to holiday season home improvement spending

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Atalanta’s Home Depot hints strong start to holiday season home improvement spending

On Tuesday, Home Depot Inc., the Atalanta, Georgia-headquartered largest home improvement retailer in the United States, had beaten sales forecast for Q3, 2021 by a substantial margin, illustrating a pluperfect beginning of a holiday quarter that is expected to score record sales.

In tandem, as more Americans appeared to be heightening up spending on tools and materials in order to complete top-tier home improvement projects, shares’ prices of Home Depot Inc had wrapped up the day’s Wall Street just a notch shy of 6.0 per cent higher to $392.71 per share.

Aside from that, latest upbeat quarterly earnings’ report from Home Depot Inc came forth as professional contractors alongside homebuilders seemed to have engaged in a toolkit-buying bonanza in a bid to complete a number of pending home improvement projects, which were stalled due to the pandemic’s fiscal consequences.

Besides, a record high home prices in the United States with supplies remaining utterly squeezed, ostensibly had provided the investors a perfect impetus to invest on home upgrades. Meanwhile, while home improvement retailers such as Home Depot have been expecting a curb in do-it-yourself consumers as more people had returned to office-jobs after a standstill in 2020, shedding lights on the flipside of the coin, Home Depot Chef Executive Craig Menear said, “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”.

Home Depot third-quarter sales, profits beat estimates

Aside from that, according to Home Depot Inc’s earnings’ report for July-to-September quarter, the American home improvement retailing giant’s same-store sales soared 6.1 per cent, insanely beating an analysts’ estimate of a rise of 1.4 per cent, while the company’s net sales rose roughly 10 per cent to $36.82 billion, above an estimate of $35.01 billion, Refinitiv data from IBES had unfurled.

Besides, in latest sign of a sustenance in strong sales of home improvement goods early in fourth quarter, Home Depot executives were quoted saying that the same-store sales of the company remained higher during first two weeks of fourth quarter compared to the same time in Q3, 2021.