Quarterly profit rose 14 percent at the world's largest home improvement chain, and shoppers spent more money on each trip to the store. Fred Katayama reports.
Home Depot has escaped the retail wreck. The world's largest home improvement chain's quarterly profit rose 14 percent. Demand increased across the board for its goods, solidly boosting sales. And shoppers spent more money on each trip to the store. Home Depot is riding atop the growth in the U.S. housing market. Americans are cashing in on their rising home values and low interest rates again to refurbish their homes. Home Depot's results buck the trend of falling sales reported this month by the biggest department store chains like Macy's and apparel stores like the Gap. It is bullish about its outlook. Home Depot lifted its profit and sales forecasts for the full year. RBC Capital Markets analyst Scot Ciccarelli said, "While some investors remain concerned that we may be closing in on the end of the housing cycle, our data suggests there are a lot of legs left - several years - based on this country's aging housing stock, lean inventory levels, and modest year-over-year home price increases." Home Depot shares eased in early trading. Lowe's reports results Wednesday.