On Tuesday, Home Depot, Inc. (NYSE:$HD) increased its outlook for the second time this year. The reason? Long-running boom in the home-improvement market is starting to get a lift from millennials and other first-time home buyers.
According to CFO Carol Tome, millennials are “moving into homes, which bodes very well for us and extends the recovery.” Aside from strong sales of starter homes, Ms. Tome also noted that an aging housing stock has played a defining role in the healthy demand.
Due to the changes, the Atlanta-based company now forecasts annual sales to increase 5.3%, led by 5.5% same-store sales growth, which is up from guidance of 4.6% growth. In regards to earnings, Home Depot forecasts a 13% jump.
Surprisingly, home-improvement companies have been experiencing rising sales even as other retailers have struggled immensely. According to Harvard University’s Joint Center for Housing Studies, Americans are forecast to pour a record $316 billion into home remodeling in 2017, which is up from $296 billion in 2016.
For the most recent quarter, Home Depot sales at stores open for at least one year increased 6.3%, and was led by 6.6% growth in the United States. For the three months, Home Depot brought in $2.67 billion ($2.25 a share), which is up from $2.44 billion ($1.97 a share) in 2016. Further, sales grew 6.2% to $28.12.
Featured Image: twitter
