Home Depot's second-quarter sales rebound, shares rise

The No. 1 US home improvement chain also raised its earnings and revenue forecasts for the year.

Higher mortgage rates combined with steadily rising real estate prices have dampened home sales this summer despite the robust economy and job market, but Americans continue to plow money into the places where they live.

The performance comes at a time when sales of new USA single-family homes fell to an eight-month low in June and data for the prior month was revised sharply lower, the latest indications that the housing market was slowing down. "Consumer spending on home improvement items hasn't fluctuated as much as on apparel", CNBC reports.

"We were very pleased with our record second quarter sales and earnings", said Craig Menear, Chairman, CEO and President.

The home improvement supplies retail giant reported a $3.51 billion profit, amounting to $3.05 per share - beating forecasts of $2.84 by Zacks Investment Research.

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"It also said the average shopper's ticket jumped 5 percent to $66.20 and customer transactions were up 3.1 percent overall".

Sales at stores open at least a year, a key indicator of a retailer's performance, surged 8 percent, and 8.1 percent in the U.S.

Shares are higher by nearly 2% in premarket trading. Analysts expected $2.84 per share. The Atlanta company's revenue grew to $30.46 billion from $28.11 billion, beating analyst's projections of $29.98 billion.

Home Depot shares, which have risen 25 percent in the past 12 months, added 0.4 percent to $194.94.

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