(New York) Home Depot reported better-than-expected quarterly results on Tuesday, benefiting from the rise in the average amount spent in stores despite a drop in the number of transactions.
From the beginning of August to the end of October, the American DIY chain posted a net profit of 4.3 billion US dollars (+5.1%). Reported by share and adjusted for exceptional items, it reached 4.24 dollars, exceeding analysts’ expectations.
The group’s turnover stood at 38.9 billion dollars (+5.6%) over the quarter, a figure also better than expected.
The average bill cost for Home Depot customers was $89.67, up 8.8% year-over-year, largely due to high inflation.
But at the same time, however, the total number of transactions fell to just under 410 million (-4.3%).
“Recording profits during the extraordinary period of the pandemic was expected”, commented in a note Neil Saunders of GlobalData, who recalls that DIY jobs have seen strong growth during the confinements.
“To be able to keep these profits when the situation has normalized is excellent. But being able to extend those benefits into the post-COVID-19 period is exceptional,” the analyst added.
Home Depot CEO Ted Decker, however, said in a statement that the economic situation remains difficult as consumers seek to save to mitigate the general rise in prices.
Another worrying factor for the group from Atlanta (Georgia): the slowdown in sales of new homes in the United States, which fell by nearly 11% in September, in particular under the impact of the rise in interest rates. ‘interest.
“Given that moving is a major driver of home improvement spending, it’s surprising Home Depot hasn’t seen a bigger deterioration in its numbers,” Saunders said.
The company reaffirmed its guidance for the full year: it expects same-store sales to rise about 3% and an operating margin of about 15.4%.
On Wall Street, Home Depot shares fell just over 1% in electronic trading prior to the opening of the stock market.