Home Depot Inc. reported a key sales metric that beat expectations in the latest quarter on steady demand, though the retailer cautioned that macroeconomic challenges remain.
Comparable sales, which track performance at locations open at least a year, rose 0.4% in the quarter ended Feb. 1, better than the average of estimates compiled by Bloomberg. Earnings per share, excluding some items, also outpaced expectations in the period.
The results suggest that the appetite for home projects is holding steady despite elevated interest rates and persistent inflation concerns. Home Depot said it gained market share, while also achieving double-digit e-commerce growth for a third straight quarter.
Shares rose as much as 4.6% on Tuesday. The stock had gained about 10% this year, compared with the S&P 500 Index being little changed.
Still, a meaningful change in housing demand has yet to materialize.
“Our customers have been on the sideline with respect to large remodeling projects for three years now,” Chief Financial Officer Richard McPhail said in an interview. “The homeowner is one of the healthiest customer cohorts out there, but they tell us that uncertainty is growing, that there’s concern around housing affordability, around job losses.”
Home Depot is the latest big-box retailer to post results this earnings season, with key competitor Lowe’s Cos. scheduled to report on Wednesday. Walmart Inc.