Home Depot benefits as more Americans spend more on their homes, spurred by rising home values. Fred Katayama reports.
It's up up and up at Home Depot as more Americans spend more money sprucing up their homes. The home improvement retailer raised its full-year outlook for profit, net sales, and sales at existing stores, and those forecasts topped analysts' targets. Home improvement companies have been experiencing strong sales at a time when other retailers have been struggling. Home Depot is benefiting from rising home values. That spurs Americans to spend more on their residences in a market that faces a shortage of single family homes. The number of customer transactions at Home Depot as well as average ticket value rose solidly. The extended spring season also boosted demand for outdoor products. As a result, quarterly profit shot up nearly 10 percent. Sales and same-store sales rose more than 6 percent. RBC Capital Markets analyst Scot Ciccarelli said, "We believe the company continues to execute extremely well and appears to be gaining further market share." Home Depot shares declining at the market open Tuesday, chipping into their 15 percent gain this year.