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Home Depot sales surge as Americans spend on home improvement amid COVID-19

Home Depot sales surge as Americans spend on home improvement amid COVID-19
© Jared C. Tilton/Getty Images

Home Depot sales surged in the third quarter as Americans are spending more on home improvement as they remain home amid the coronavirus pandemic, the company reported Tuesday.

The home improvement retailer experienced a 23.2 percent increase in sales, amounting to $6.3 billion, in the three months ending on Nov. 1, when compared to the same period in 2019, according to its third quarter report. Home Depot’s revenue reached a total $33.54 billion in the third quarter.

Home Depot’s sales at stores jumped 24.1 percent, outpacing the most generous predictions on Wall Street of a 17.2 percent increase, according to The Associated Press. In the U.S., where the pandemic has been continuous since the beginning of the year and millions have stayed at home more, sales surged 24.6 percent. 

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The Atlanta-based retailer earned a net $3.43 billion in the quarter, $3.18 per share, while last year, Home Depot recorded $2.77 billion net earnings, or $2.53 per share. 

"The third quarter was another exceptional quarter for The Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year," Home Depot CEO and Chairman Craig Menear said.

The home renovation industry is one of the few that has seen a boost in revenue amid the financial strain caused by the coronavirus pandemic. More people are investing in their homes as spending on travel and entertainment plummets. 

Home construction in the U.S. has seen a 1.9 percent increase in September, and applications for building permits jumped 5.2 percent, according to the AP.

Home Depot also announced Tuesday that its temporary financial support programs for its front-line, hourly employees were being made permanent. The programs are being valued at about $1 billion annually, according to a company release. 

The retailer’s third quarter report came a day after the company announced it was acquiring HD Supply in an approximately $8 billion deal.