Home Depot Sales Up But Trims Profit Forecast

Home Depot’s second-quarter sales rose slightly as the nation’s biggest home improvement retailer benefitted from an $18 billion acquisition this spring, but customers continued to rein in spending due to broadly higher costs and elevated interest rates, Michelle Chapman reported for the Associated Press (AP).

Home Depot's sales edged up to $43.18 billion from $42.92 billion, beating the $42.57 billion that Wall Street had expected. I Photo: The Home Depot X

Sales edged up to $43.18 billion from $42.92 billion, beating the $42.57 billion that Wall Street had expected, according to a poll by Zacks Investment Research.

The quarterly performance was an improvement, thanks in part to the acquisition of contract supplier SRS Distribution, which contributed $1.3 billion to Home Depot’s sales for the quarter.

SRS provides materials for professionals like roofers, landscapers, and pool contractors.

“The decision of Home Depot to deepen its expertise in specialist categories via the SRS Distribution acquisition is to be welcomed, as this adds a new base of customers,” Neil Saunders, managing director of GlobalData, said.

“We believe the integration of SRS will bring sales and bottom-line benefits over time, as well as provide a major point of differentiation against rivals like Lowe’s, which are trying to cash in on the pro space.”