New York, NY — Home Depot breezed past all expectations in the third quarter and raised its annual profit expectations again as Americans plow money into their homes, even amid hints that the housing market is cooling.
Comparable-store sales, a key indicator of a retailer’s health, rose 4.8 percent, but it jumped 5.4 percent in the U.S., its dominant market.
Housing prices and mortgage rates are steadily increasing and home sales fell for the sixth consecutive month in September.
Contracts to buy new homes, a forward-looking indicator, have been weak for months.
That is not all bad news for home-improvement retailers like Home Depot and Lowe’s, which posts earnings next week.
People who buy homes are a huge revenue generator, but so are those who are investing in the homes that they already own, for a multitude of reasons. A strengthening economy and historically low unemployment have also created a significant tail wind for Home Depot.