Home Depot’s same-store sales increased by 8.9% in the U.S. in Q4 (ending on January 31), which was far beyond the initially expected 5.3% rise. Shares also grew by 2.6% (up to $126.04) in premarket trading on February 23.
As reported by Reuters and BNN News, these figures amount to net earnings of $1.47 billion in the quarter, up from $1.38 billion a year ago.
According to Home Depot, these developments accompanied a rise in the average amount that consumers are willing to spend in home improvement, stemming from increased employment, better wages, and the highest level of single-family home sales in the U.S. in 10 months last December.
Company officials said that they are projecting a 2016 sales growth of 5.1% to 6.0% ($93.03bn to $93.83bn). Comparable sales, on the other hand, might see 3.7% to 4.5% growth.
Amid a gradually recovering market characterized by credit growth and rising real estate prices, leading home improvement franchise Home Depot Inc. (HD.N) enjoyed generous quarterly sales, reflecting the noticeable gains enjoyed by the sector recently.