Boosted by homeowners and contractors spending more on higher end and exclusive products, Home Depot came out ahead of its revenue projection in the third quarter of 2018.
At stores open for more than a year, sales increased 5.4 percent in the third quarter, surpassing the Wall Street forecast for 4.8 percent growth, and total sales increased 5.1 percent to $26.30 billion. Home Depot chief financial officer Carole Tomé says, “People are responding to innovation and willing to pay for it,” telling Fortune, “The pros (professional contractors) say, ‘This [product] is going to save me time’ so they buy it." Home Depot has now increased its full-year forecast, anticipating 7.2 percent sales growth by January 2019, upping its estimates 0.2 percent.
“Housing-related metrics are moderating, but the drivers of home improvement spend are supportive of our outlook,” Tomé told Wall Street analysts earlier. “Home prices continue to appreciate, the housing stock is aging, households are being formed and housing continues to turn over.” And as home values rise, consumer are more likely to want to spend on an asset they see as appreciating.
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