By MICHELLE CHAPMAN, AP Business Writer
Home Depot’s first quarter sales improved despite the slow start to spring and the home improvement chain picked up year -round guidance.
Revenue rose about 4% to $ 38.91 billion, quickly beating Wall Street expectations, according to a survey by analysts at Zacks Investment Research.
Sales in stores have been open for at least a year, a key indicator of a retailer’s health, up 2.2% worldwide, and 1.7% in the US
Home improvement stores remained busy during the pandemic as people working from home took on new projects and now they are in their traditional busy spring season while the owners house out for flowers, vegetables and other gardening and landscaping items.
Home Depot earned $ 4.23 billion, or $ 4.09 per share, for the quarter, also topping analyst per-share projections of $ 3.67. A year earlier the Atlanta company had earned $ 4.1 billion, or $ 3.86 per share.
Home Depot continues to attract customers despite a chill in the housing market. Sales of previously occupied U.S. homes slowed in March to the slowest pace in nearly two years due to sharp rises in lending rates and record high prices that have discouraged home buyers.
Current home sales fell 2.7% last month from February to a seasonally adjusted annual rate of 5.77 million, the National Association of Realtors said.
Last week mortgage buyer Freddie Mac reported that the 30-year rate rose to 5.3% from 5.27% last week. In contrast, the average rate stood at 2.94% a year ago.
Home Depot now forecasts revenue-per-share-percentage-growth to be in the middle of a digit. It expects overall sales growth and the same sales growth of approximately 3%. The company had previously predicted fiscal 2022 growth and growth in the same store to be slightly positive. It predicts low single digit revenue per share growth.
Shares rose more than 4% before the market opened.
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