Home Depot reported Tuesday its third-quarter revenue increased nearly 6% to $38.9 billion beating analyst expectations, as the retail sector is still suffering from rising costs and macroeconomic pressures.
Comparable sales for the third quarter of fiscal 2022 increased 4.3%, and comparable sales in the U.S. increased 4.5%, the company said.
Despite beating Wall Street expectations, the Atlanta based company left its annual forecasts unchanged at about 3%, raising concerns about demand heading into the profitable holiday season.
The company’s net earnings increased $4.24 per share, while analysts on average expected a profit of $4.12 per share.
“We delivered another solid performance in the third quarter, driven by strength in project-related categories across the business,” Home Depot president and CEO Ted Decker said in a statement.
“We’re navigating a unique environment,” Decker later said on a call with investors. “We can’t predict how the macroeconomic backdrop will affect customers going forward.”
Investors have kept an eye on Home Depot’s performance and whether shoppers are still spending on renovations and do-it-yourself home improvements.
Shares in the largest U.S. home improvement chain slipped in early trade. Home Depot stock fell 2% after.
Home Depot said its average ticket prices rose about 9% to $89.67. The company also said its sales per-retail-square-foot rose 5%.
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