Home Depot revenues, earnings smash estimates

US retailer Home Depot posted quarterly sales that came in well ahead of expectations as Americans turned to home improvement projects while isolating inside their properties.

Quarterly revenues surged 23.4% to $38.05bn, a new record high and ahead of estimates of $34.53bn, while earnings per share came in at $4.02 each, also better than the $3.71 expected. Profits grew by 25% to $4.33bn.

Same-store sales soared 25% in the quarter, while average purchases rose 10.1% to $74.12.

Home Depot also said on Tuesday that customer transactions and sales per retail square foot both saw double-digit growth year-on-year.

However, while the Covid-19 pandemic helped the firm boost sales, costs have also risen due to the outbreak, with Home Depot spending $480.0m in the quarter to cover additional compensation for employees - including weekly bonuses for hourly workers.

Although Home Depot did not issue any guidance for the remainder of 2020, the firm said it would pay out a second-quarter dividend to shareholders.

As of 1345 BST, Home Depot shares were up 0.54% in pre-market trading at $289.80 each.