Home-improvement chains had a blockbuster 2020 as revenue and profit surged from stuck-at-home Americans splurging on paint, tools, and gardening equipment to upgrade their living spaces through DIY projects. The steady rollout of COVID-19 vaccines, however, prompted more Americans to return to outdoor activities and abandon some pandemic-induced shopping habits. U.S. same-store sales at Home Depot climbed 3.4% in the second quarter ended Aug. 1 – the smallest increase in two years, and missed analysts’ estimates of a 4.9% rise, according to IBES data from Refinitiv. The slowdown in sales lowers expectations for smaller rival Lowe’s Cos Inc, which is even more dependent on DIY consumers than Home Depot, J.P. Morgan analysts said in a note. The trend helped push Home Depot’s quarterly net sales up 8.1% to a record $41.12 billion, while its net earnings rose 11% to $4.81 billion.

Source: MetroXpress August 17, 2021 10:14 UTC