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Home Depot posts record sales as demand for DIY products surges

REUTERS/Mike Blake/File Photo

Home Depot Inc (HD.N) reported its biggest rise in quarterly same-store sales in at least two decades on Tuesday as demand for paint, tools and lawn mowers surged from consumers stuck at home due to the COVID-19 pandemic.

The company’s same-store sales jumped 23.4% in the second quarter, surging past analysts’ average estimate of a 10.5% rise, as the home improvement chain emerged as one of the corporate winners during the pandemic.

Shares of Home Depot, however, fell about 1% in morning trading after analysts cautioned that its sales might have hit their peak.

“These are record comparable sales - it’s really tough to sustain that,” Wedbush Securities analyst Seth Basham said. “We will see a slowdown in the back half of the year - the question is the degree to which the slowdown occurs.”

The company said it could not determine whether strong demand from earlier months would continue for the rest of the year, despite the U.S. housing market performing better than the broader economy.

18 August 2020

News Source Reuters

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