An overcharged housing market is keeping aisles full at Home Depot and on Tuesday, the company reported soaring sales that blew past Wall Street expectations.
Sales hit $37.5 billion, up 32.7% from the same year, far better than analyst projections of $34.88 billion, according to Zacks Investment Research
Sales at stores open at least a year, a critical indicator of a retailer’s health, jumped 31%. In the U.S., those sales rose 29.9%.
Home Depot’s profit nearly doubled, hitting $4.1 billion, or $3.86 per share. That compares with $2.2 billion, or $2.08 per share, a year ago. Wall Street expected $3.04 per share.
Home improvement stores have bustled during the pandemic with millions working and attending school remotely. Many families found that larger homes, or at least different homes, were a necessity. That has fueled sales at Home Depot.
Home Depot Inc. is also updating its face mask policy, following the eased guidance from the Centers for Disease Control and Prevention. The home improvement retailer says customers and workers who are fully vaccinated are not required to wear masks or facial coverings in its stores, except where it’s mandated by state or local ordinances. Masks are still encouraged for those who aren’t fully vaccinated.
Shares climbed 2.3% before the market opened Tuesday.