New York (CNN Business)Is the red hot housing market finally set to cool off? If so, someone forgot to tell Home Depot shoppers.
Home Depot reported earnings for the third quarter Tuesday that easily topped forecasts. Overall sales rose nearly 10% from a year ago to $36.8 billion, also surpassing Wall Street’s estimates.
Chairman and CEO Craig Menear said in the company’s earnings statement that results were solid thanks to “elevated home improvement demand that has persisted.”
Sales growth at stores open at least a year picked up in the third quarter. Home Depot said that so-called same store sales rose 6.1% globally and 5.5% in the United States. That’s up from a worldwide increase of 4.5% in the second quarter and 3.4% domestic increase.
Shares of Home Depot (HD) gained 6% in late morning trading on the news. The stock has soared nearly 50% so far this year and is trading at a record high.
Top rival Lowe’s (LOW), which will report earnings on Wednesday, also rallied following Home Depot’s results. Lowe’s shares rose 4% Tuesday and are up more than 50% this year.
Consumer spending has continued to power the economy, despite lingering concerns about Covid-19, inflation and global supply chain bottlenecks that have caused major shipping delays.
Walmart (WMT) reported healthy results as well Tuesday. And retailers that cater to consumers looking to make improvements to their home have done exceedingly well. Williams-Sonoma (WSM) reported strong results in late August and its shares have more than doubled this year.
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