Quarterly revenue shot up at the world's largest home improvement chain as consumers spend money on renovating their homes. Fred Katayama reports.
The strong housing market fueling sales at Home Depot. Quarterly revenue shot up 6.6 percent at the world's largest home improvement chain. Sales at existing stores were strong, too. Profit rose 9 percent. Shoppers spent more money at the stores, driving the average ticket up. They're increasingly cutting back on clothing and accessories as they open their wallets wider to renovate and redecorate their homes. Driving the growth of the housing sector: low interest rates and a stronger market for jobs. Evercore ISI senior analyst Greg Melich said, "Home Depot drove traffic well during a more normal selling season with some weather headwinds in a continuing recovery of the housing market." Home Depot is bullish about the second half, raising its full-year earnings outlook. Shares adding to their nearly 4 percent gain this year in early trading. Rival Lowe's reports results Wednesday.