Home Depot sees revenue growth as customers focus on small-scale home improvements despite a challenging housing environment. The company reported strong first-quarter results, driven by steady consumer spending on manageable upgrades.
Revenue rose to $39.86 billion, surpassing analysts’ forecast of $39.3 billion. This marked an increase from $36.42 billion in the same quarter last year. The gain came as customers shifted toward smaller projects and took advantage of seasonal promotions.
Same-store sales dipped just 0.3%, which was better than Wall Street’s expected 0.1% decline. U.S. comparable sales actually climbed 0.2%, showing resilience in the face of economic headwinds.
Customer transactions increased 2.1%, and the average ticket rose slightly to $90.71. CEO Ted Decker noted strong spring engagement and consistent demand for lower-cost renovations. He said results aligned with Home Depot’s internal forecasts.
Still, macroeconomic conditions remain a drag on larger investments. Rising mortgage rates and persistent inflation have cooled demand for major home upgrades. In March, existing home sales dropped 5.9%, the lowest level for that month since 2009.
Neil Saunders of GlobalData pointed to sluggish home sales as a persistent challenge. He warned that nervous buyers are holding off on large-scale improvements. That, in turn, slows demand for big-ticket items.
Despite the slowdown, Home Depot reaffirmed its full-year sales growth projection of 2.8%. The company earned $3.43 billion, or $3.45 per share. Adjusted earnings reached $3.56 per share, just shy of the $3.60 analyst estimate.
Investors responded positively. Home Depot’s stock rose over 3% in premarket trading following the report. The market viewed the results as a sign of underlying strength, even with broader economic uncertainties.
The company’s success reflects a clear consumer trend: small, budget-friendly upgrades are replacing larger, costly overhauls. This shift is helping Home Depot stay ahead as homeowners wait for economic clarity.
Home Depot sees revenue growth as customers focus on small-scale home improvements, a strategy that continues to buffer the retailer from broader housing volatility.
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