(Reuters) – The Home Depot on Tuesday reported second-quarter profit above expectations as demand was buoyed by small renovation projects amid a stabilizing housing market.
The American DIY specialist also announced a new share buyback program of 15 billion dollars (13.72 billion euros).
The group’s net profit per share reached $4.65 in the quarter ended July 30, beating analysts’ estimates of $4.45 per share, according to IBES data from Refinitif.
Home Depot also posted a smaller-than-expected drop in quarterly same-store sales. They fell 2% during the quarter, while analysts on average expected a decline of 3.54%.
American consumers, faced with runaway inflation and higher borrowing costs, are avoiding investing in major home improvement projects. However, they continue to spend on the upkeep of their property.
“While the categories associated with smaller projects have seen some strength, we have seen continued pressure in certain non-essential, high-value asset categories,” Home Depot General Manager Ted Decker said in a statement. .
Customer transactions fell 1.8% at Home Depot in the second quarter, but improved from the 4.8% decline in the first quarter. The average ticket rose a modest 0.1%, the company said.
(Written by Deborah Sophia in Bangalore; Mariana Abreu, editing by Kate Entinger)
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