Consumers have shifted their spending priorities due to inflation, but the largest home improvement retailers experienced strong sales in Q3.
This week, Home Depot reported net sales increased 5.6% year over year to $38.9 billion. The home improvement retailer’s operating income grew 6.1% from the year-ago period to $6.1 billion, while its net income increased 5.1% to $4.3 billion.
“In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, CEO and president. “Our performance reflects continued strength in demand for home improvement projects.”
Meanwhile, Lowe’s reported third-quarter net sales were up 2.4% to $22.5 billion. Overall comparable sales were up 2.2% — beating both FactSet (0.8%), and Telsey Advisory Group (1%) estimates. Excluding an impairment charge related to the sale of its Canadian business to Sycamore Partners, the retailer’s earnings per share increased by 19.8%.
Lowe’s is also experiencing the impacts of inflation on consumers, as transactions have fallen 5.4%, but average ticket amounts increased 8.4% to $101.80.
The retailer has launched a number of initiatives targeting professional customers, including faster delivery and the return of its “PROvember” sales event. Sales growth among pro customers increased 19% this quarter compared to a 13% increase last quarter.