Home Depot customers stick to smaller projects as housing costs stay high - Fox Business
Home Depot reported a 5.7% increase in second-quarter sales, driven by consumer preference for smaller home improvement projects over larger renovations. High mortgage rates and elevated home prices continue to constrain the broader housing market.
Why it matters
Consumer spending patterns at major retailers like Home Depot serve as a key indicator of the health of the U.S. housing market and general economic sentiment.
Home Depot customers are still spending on their homes, with smaller projects supporting demand as Americans contend with elevated mortgage rates and high home prices. The home improvement retailer said Tuesday that second-quarter sales rose 5.7% from a year ago to $47.9 billion, while comparable sales increased 1.7%. Comparable sales in the U.S. climbed 1.3%. The results came as consumers continued to favor smaller-scale home improvement work over larger projects. "Our second quarter results exceeded our expectations. We saw broad-based demand across the business as customers continued to engage in smaller projects," Home Depot Chief Financial Officer Richard McPhail said. Shoppers also spent more per transaction. Home Depot's average ticket rose 2.8% from a year earlier to $92.50, while comparable customer transactions declined 1%. IS MIAMI REALLY COSTLIER THAN NEW YORK CITY?
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